YODEL GROUP EYES RETURN TO BLACK AS LOSSES NARROW

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The Liverpool-based group behind delivery companies Yodel and Arrow XL has narrowed losses and revealed that it is hoping to return to profit in the current financial year.

Yodel Distribution Holdings, which also reported rising revenues, said the results were expected as it continues to integrate the DHL Domestic business bought in 2010.

According to its latest set of accounts, Yodel Distribution Holdings generated losses before interest, taxes, depreciation and amortisation excluding exceptional items and including the Collect+ join venture of £41.2m in the year ending 30 June 2014, which represents a narrowing of 48 per cent.

The group also indicated that pre-tax losses on ordinary activities reduced by 24 per cent to £85.8m. And turnover including joint ventures increased by 5 per cent to £461m.

In their strategic report accompanying the accounts, the directors said: "The full integration of the DHL Domestic business, which was acquired in March 2010, was planned to take between three to five years. During this period, it was anticipated that a loss would be made, so this year's financial out-turn was expected."

Yodel Distribution Holdings wholly owns a portfolio of businesses and operates under the brands Yodel and Arrow XL. Yodel is a one-man parcel delivery service while Arrow XL is a two-man delivery and installation services company.

The directors added: "During the year, the one-man parcel delivery business prioritised and achieved improved service levels and has continued to attract significant new business, whilst also delivering further ongoing cost efficiencies. Indeed, more than 300 new customers started trading with the business in the year ended June 2014.

"The two-man delivery and installation services business also prioritised and achieved improved service levels and has continued to attract new business, whilst also delivering further ongoing cost efficiencies."

The directors concluded that the group is budgeting a profit in terms of earnings before interest, taxes, depreciation and amortisation for the year ending June 2015.

Neil Lloyd, Yodel's chief executive officer, said: "The significant improvement in customer experience of recent years continues but we are not complacent and we are constantly investing to make our customers' experience a better one. It is very pleasing to see another year of huge improvement, achieved with the support and hard work of the whole Yodel workforce, our self-employed couriers and drivers.

"We benefit from improvements in consumer confidence but we are also taking market share, and, therefore, growing at a faster rate than the parcel volume in the market."

Yodel's executive chairman Dick Stead added: "The UK parcel market remains a highly competitive place; however, following the demise of City Link, we expect to see capacity issues in the wider market. In particular, around specific peak demand days resulting in increasing prices for guaranteed next day parcels.

"Yodel’s management and its shareholders remain absolutely focussed on developing a parcel business with a profitable long-term future, by providing great customer experience at a great price."

Yodel Distribution Holdings' holding company is LW Corporation, which is ultimately controlled by Sir David Barclay and Sir Frederick Barclay Family Settlements. Sir David and Sir Frederick, who are both directors of Yodel Distribution Holdings, are best known as the owners of The Daily Telegraph and The Sunday Telegraph.

[maisymoo04]

Keep working hard folks and this will be another company collapsing