Yodel has delivered annual profits "well beyond all forecasts" driven by the boom in e-commerce which saw it land a number of major deals with multiple clients over the past year.

In its latest trading update for the fourth quarter to 30 June 2021, the company revealed it has exceeded its financial targets, with Q4 volumes up by a record 12% compared to the same period last year.

Total volumes in the twelve months to 30 June 2021 leapt by 28%, compared to the twelve months to June 2020, with full-year revenue slightly over the previous guidance of £563m, up from £430m in the previous year.

The company added: "Yodel ended the year being strongly profitable at the profit before taxation (PBT) level in the year to June 2021" but the trading update did not disclose the figure.

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Turning to its strategic and operational highlights, Yodel said it had invested over £14m in Yodel’s fleet during the year, including tractor units and trailers, to help the business handle increased parcel volumes, following what it described as a record year for online retail.

Other key acheivements during the year include the launch of an LGV apprenticeship scheme across the UK, which allows applicants to train for a category C+E license at one of three national sort centres, and the relaunch of its consumer-to-consumer service, Yodel Direct, which allows individuals and small businesses to ship parcels directly between one another.

Mike Hancox, CEO of Yodel, said: "FY21 has been the most successful year in Yodel’s 13-year history, delivering a profit well beyond all forecasts and our strongest PBT result ever. Thanks to the tireless work of our colleagues across the country, coupled with our expert handling services, we improved our overall performance which helped finish FY21 very strongly.

“Over the past year we’ve signed multiple new clients including Hello Fresh, JD Sports and Yours Clothing and we’re expecting our client base to continue to grow. We also have a solid pipeline of new business opportunities, such as Yodel Direct – our re-launched customer-to-customer service offering – which will deliver further growth in the new financial year.

"Despite restrictions easing, the e-commerce market continued to grow throughout the pandemic, and we believe that, thanks to consumers’ appetite for home delivery, the shift online is set to become permanent.”

The company said it expects to release its full results for the year ending 30th June 2021 towards the end of December 2021.