October 30 2020

Trading Update

Summary 

• An overall increase in sales and volume growth of 16% compared to Q1 of FY20
• Full-year revenue projected to be between £500m - £520m with EBITDA expected to be positive on both a pre and post IFRS16 accounting standard adoption
• It is expected that Yodel will be profitable at the PBT level in the year to June 2021
• Announcement of a strategic investment in the creation of a new Northern super-hub to support long-term growth
• Creation of more than 3000 new roles for the upcoming peak season 
• Trustpilot rating has remained at 4.5/5, highlighting strong customer satisfaction 
• In the last year, we have carried 4.7m bouquets of flowers, 6.3m wine and drink packages (80% of the eRetail wine sector), 5.4m fresh food parcels, and 4.5m pet food parcels
• Delivered a million meals to NHS staff over the course of 12 weeks, supporting front-line workers at a critical time for the health service
• Our high quality, flexible business model has again proven resilient in the face of rapidly changing customer behaviours. Despite experiencing peak trading levels, our business has proven resilient and flexible, maintaining full operational capacity throughout the COVID-19 crisis, including a transition to working from home for office-based colleagues 

Mike Hancox, CEO of Yodel, commented : “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.

The e-commerce market has seen a significant shift primarily driven by the COVID-19 pandemic, which accelerated the market forward by 3-4 years. Of course, our overriding priority throughout this period has been the safety of our colleagues and the public, and we have worked exceptionally hard to ensure we have a COVID-19 safe and functional work environment. In addition, our network has become a vital part of keeping the country moving.

Not only have we increased our usual volumes in the right areas over this period, announcing new and extended partnerships with major retailers, but we have also supported key workers and the government with essential COVID-19 testing.

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. 

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.”

Results for the year ended 2020:  

Yodel’s audit will be conducted on a remote basis and we currently expect to release its results for the year ending 30th June 2020, prior to the end of December 2020. A further announcement will be made in due course.