Yodel has hinted that this financial year it will move into profitability for the first time since the business’s formation in 2010, off the back of increased volumes and new business wins.

The parcel carrier indicated that it had made "significant progress" in its financial turnaround in the year ended 30 June 2014 and expects to post an operating profit for the 2014/15 financial year.

It claimed it had improved its EBITDA (earnings before interest, tax, depreciation and amortisation) by more than £70m compared to the previous year’s figure in 2013/14. A spokeswoman was unable to confirm exact figures, but its most recent set of financial accounts filed at Companies House reveal a a pre-tax loss of £98.2m for the year ended 30 June 2013.

The operator said the growth  was driven by new contract wins and more business from existing customers, particularly growth in flower and wine deliveries. It said many of its business wins during the last year have been with returning customers, including a contract it won in July last year with The Hut Group.

It also claimed that parcel volumes increased 11% between 31 December 2013 and 30 June, compared to the same period in 2012/13.

Chief executive Neil Lloyd said Yodel is continuing to focus on improving its customer service. Lloyd took the reins at the company last year following the departure of former chief executive Jonathan Smith.

He said: “As a new management team, we set ourselves a number of tough targets twelve months ago and I am pleased to say that with the support and hard work of the whole Yodel workforce, we have exceeded our goals.”

Lloyd claimed that the firm is increasing its market share and “growing at a faster rate than the parcel volume in the market”.

However, executive chairman Dick Stead said the parcel sector still remains “a crowded and ultra-competitive space”.

Last month Yodel won a three-year contract renewal with River Island.