Yodel reports increase in annual losses
Yodel Logistics’ annual report for the year ended 30 June 2107 – which was made available on the UK Companies House last week – showed a loss of £84.203m, compared to a loss in £59.314m in 2016.
Writing on behalf of the Board in the annual report, Philip Peters said that both Yodel and sister company Arrow XL “continue to focus on providing excellent client and customer service and product offerings, together with winning profitable new contracts”.
Peters also said that up to the point of the fire at its Worcester hub on 20 April 2017, Arrow XL “as out performing both Budget and prior year results, as well as achieving improved service levels, attracting new business and continuing to delivery ongoing cost efficiencies”.
Peters added: “The Arrow XL business will continue to be financially impacted by the Worcester fire through the 2017-18 financial year, however operational capacity has now be restored with the opening of Droitwich.”
Turning to Yodel, Peters said that steps are in place for a turnaround.
“Yodel have and continue to invest in improving the quality of its service centres throughout the year,” said Peters. “In addition, Yodel is progressing with significant investment in an upgrade of its IT systems and infrastructure. There has been downward pressure on pricing generally in the industry throughout the year. Yodel are reacting by taking the necessary steps in order to move towards a profitable business.”
Peters added: “The directors expect that the Yodel financial result for the year ending June 2018 will again be challenging, however the Yodel business is now focused on delivering a number of key financial initiatives that are expected to set the business on a profitable trajectory.”
UPDATE
A spokesperson at Yodel has informed Post&Parcel this afternoon: “At Yodel we are continuing to modernise and improve the efficiency of our business model in a growing and increasingly competitive sector. However, whilst demand for our services is increasing, we continue to face growing downward price pressures.
“Despite this, our commitment to using our unique data and customer insight to continually improve our service to retailers and their customers remains unwavering.
“Furthermore, Yodel’s recent acquisition of Drop & Collect Ltd illustrates our ambition to invest in driving growth and build a sustainable future for the business. Our owners recognise the positive journey the business is on and remain committed to investing in our people and operational infrastructure for the long-term.”
