ArrowXL said the UK economy continued to be “difficult” and posed a risk to the group as it reported a 10% reduction in revenue, but that it was relying on strategies to keep a tight control over cashflow.
Turnover fell from £105.2m to £94.6m in 2025 and gross profit reduced to £20.2m from £26.5m.
Pre-tax profit increased significantly, to £137.6m compared to a £9.1m loss in 2024, but the two-person delivery firm said this was due to an exceptional items credit.
A bank cross guarantee of £145m was satisfied when pan-European logistics business Jacky Perrenot Group acquired ArrowXL in 2025 and the company was released from the liability.
Excluding the exceptional item there would have been a loss of £9.7m during the period: “In part, this was due to concerns surrounding the acquisition of ArrowXL, resulting in a reduction in sales,” the company said in a business review.
ArrowXL added that its directors were disappointed that its key performance measure, EBITDA, also showed a deterioration to £2.7m in 2025, compared to £6.7m the year before.
“The UK economy has also experienced significant inflationary pressure throughout the period, particularly in relation to wages, fuel and utilities,” it explained.
“Whilst some of these cost increases are passed on to customers, there is a clear dampening effect on consumer spending power which has contributed to a lower like-for-like adjusted EBITDA performance.”
ArrowXL said the group’s forecasts continued to be regularly “stress tested” and that it had deployed strategies and tools to mitigate issues: “Actions taken by the group include annual rate increases, tight cost control, capital rationing and trade debtor management.”
