Fedex Express UK Transportation saw turnover and profit decline in the year to 31 May 2025, thanks to a loss of some “large” customers and its strategy to attract higher yielding clients, the company has revealed in its latest annual results.
In the 12 months to 31 May 2025, the US-owned parcel delivery firm, which employs over 6,300 staff, saw turnover fall to £539.5m (2024: £566m) with pre-tax profit dropping to £24.5m (2024: £27.3m).
Despite sales costs being slashed to £478.2m (2024: £528.5m) during the period, which resulted in gross profit for the year increasing to £61.3m (2024: £37.5m), an almost threefold leap in administrative costs, from £12.2m to £35.9m, acted as a major factor in dragging down pretax profit for the year.
Staff numbers remained steady during the year at 6,314 (2024 - 6,324) whilst staff wages and salries rose to £218.6m (2024: £ 213.1m).
In its strategic review of the results, the company stated: “Turnover has decreased as some large customers did not continue services at the end of their contract combined with the company’s effort to attract the right customer and yield.
“The decrease was within special services, but the core domestic network business increased in revenue. This increase can be attributed to customer demand supported by increased consumer confidence throughout FY25, as well as generally improved macroeconomic factors such as steadily reducing interest rates and reducing inflation compared to FY24.
The report added: “Purchase transportation and network costs have decreased following volume reduction. The company continues to operate as a service provider with limited risk and achieves appropriate returns for the services provided within the group.
“Decrease in profit before tax is due to lower interest income on the company’s cash pooling balance and higher interest expense attributed to movements in the company’s lease portfolio.”
Turning to developments during the year the report said: “On 9 May 2025, the company announced its commitment to UK growth with plans for two new state-of-the-art logistics hubs, anticipated to be operational by 2029.
“This proposed strategic move consolidates its existing road hub infrastructure from five hubs into two brand new facilities, incorporating advanced technologies to enhance service for customers and support future growth.”
The average number of employees has remained consistent 6,314 (2024 - 6,324).
A request for comment from Fedex Express UK has yet to receive a response.
