Yodel results mask "unprecedented growth" as pandemic drives turnaround

Yodel said it was on course to become profitable in the year ending June 2021 – a first in its 10-year history.

Chief executive Mike Hancox said “unprecedented” growth in recent months had propelled the parcel firm into the black and he expected EBITDA to deliver “a strong positive result in FY21”.

Yodel said there had been an overall increase in sales and volume growth of 16%, compared to the first quarter of the latest financial period.

Full-year revenue is projected to be between £500m and £520m.

The trading update followed the publication of results for the year ending 30 June 2019, which showed that Yodel's revenues had increased to £420.6m (£403.4m) and the company had reduced its pre-tax losses to £67.1m (£111.8m).

Hancox said: “Our 2019 accounts reflect a business entering a major turnaround.

“What they do not show, however, is the unprecedented, profitable growth we have experienced in recent months.

“Thanks to the adaptability of our network and the tireless efforts of our colleagues, we have performed exceptionally well so far this year and expect EBITDA will deliver a strong positive result in FY21.”

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He said the e-commerce market had seen a significant shift, primarily driven by Covid-19, which accelerated the market forward by three or four years.

“We have worked exceptionally hard to ensure we have a Covid-19 safe and functional work environment,” he added.

“In addition, our network has become a vital part of keeping the country moving.

“Prior to the pandemic, we had been streamlining our operations to focus on more profitable traffic that our network is well-positioned to handle.

“As a result, we have become a leading partner for delivering a broad range of parcels and an expert in everyday premium items.”

Hancox added: “While the economic impact of Covid-19 will continue to present challenges, we believe that the growth in volume we have seen in recent months is here to stay and we are investing in a new Northern Super Hub to ensure our network is fit to handle the long-term growth we are targeting.

“We are in an ideal position to meet shifting consumer demands as we enter a dramatically new landscape.”