Summary - Upgraded profit guidance and growing volumes

Financial highlights

-Overall increase in volumes in Q3 FY21 (January-March 2021) of 59% compared to Q3 of FY20
-Total volumes in the nine months to March 2021 have grown by 35% compared to the nine months to March 2020
-Full-year FY21 (year ending June 2021) revenue projected to be over £565m, up from the over £535m guidance in the January update (FY20 was £430m)
-Yodel will return to being strongly profitable at the Profit before Taxation (PBT) level in the year to June 2021

Strategic and operational highlights

-More than 3,000 new roles were created for the recent November–December 2020 peak trading season
-Trustpilot rating has improved to 4.6/5, re-enforcing Yodel’s position as a leading parcel carrier in the UK market
-Operational conditions through lockdown 3 have been very challenging, but we have continued to deliver excellent customer service with high levels of volume
-We have announced an investment in our infrastructure to ensure that we are best placed to continue to grow towards the peak trading period for later in 2021
-The Ecovardis silver award has been awarded to Yodel to highlight the efforts made to understand, track, and improve our environmental, social, and ethical performance
-Yodel have won a CCA Global Excellence award for our customer service portal Erin

Mike Hancox, CEO of Yodel, commented:

We’re continuing to make significant progress during FY21. The work of our colleagues up and down the country has been fundamental to the success that we’re seeing, and we thank them for their tireless efforts.

We are using technology to get smarter; our customer service is improving thanks to a more integrated approach to technology, and this is helping to reduce our operational costs. Just as importantly, it’s supporting us on our environmental journey too. We’re using less fuel as a result of driving more efficient routes, and our work with SmartDrive has helped us analyse driver behaviour and push for improved efficiency.

We’re expecting our existing client base to continue to grow and we have a solid pipeline of new business opportunities which will deliver further growth in the new financial year.

In all, the figures for Q3 reflect the positive work that the business has undertaken as we continue to progress. We’re investing in technology, capacity growth and efficiency improvements and it’s rewarding to see these come to fruition. On a personal note, I’ve been impressed with the way in which all our colleagues have got on with their jobs amongst the national uncertainty. They are the greatest asset of the business, for which we are most grateful.