Yodel’s future close to being decided amid administration reports

Yodel has declined to comment on reports that the delivery giant is preparing to call in administrators.

Reports in The Times and The Daily Telegraph late yesterday evening revealed the potential move being considered by the Liverpool-headquartered group.

However, when contacted by City A.M., Yodel said its process of reviewing its strategic options was “nearing its conclusion” and that there are “a number of parties” looking to acquire it.

Yodel is owned by the Barclay family, who recently took back ownership of The Daily Telegraph.

In a new statement released following reports that administrators are being lined up, a Yodel spokesperson said: “A process to review strategic options is nearing its conclusion with a number of parties looking to acquire the business. In the meantime Yodel is focused on business as usual.”

In a more detailed statement released a few hours later, Yodel said: “Yodel notes the speculative press coverage regarding the current situation of the company.

“In the summer of 2023, following a number of unsolicited approaches, we hired advisers to carry out a full strategic review. The company has continued to engage with interested parties regarding strategic options for Yodel. We can confirm that these discussions are ongoing, constructive and are in the final stages. 

“While these discussions are ongoing, operations continue without any disruption, with thousands of parcels travelling through our network and being successfully delivered throughout the UK.

“Our performance over the last year is testament to the long-term strength and growth potential of the Yodel business, handling 191 million parcels with revenues up 3.4 per cent.

“The Christmas peak season achieved record service levels, and we have seen parcel volumes through our Out of Home network more than double with the significant rise in demand for customer-to-customer services.”

Yodel is part of the Barclay-owned Logistics Group Holdings which reported a pre-tax profit of £17.6m for the year to June 30, 2021, its most recently published financial accounts.

That total was a rise from the £41.8m loss it reported for the prior year. Its revenue also surged from £520.6m to £676m over the same period.

The accounts for Yodel and Logistics Group Holdings for June 30, 2022, were due to be filed with Companies House by the end of 2023 but are now more than one month overdue.

Yesterday, the company said: “Yodel is currently exploring strategic development options following a number of approaches and the appointment last summer of Clearwater International as advisers.

“The business continues to perform strongly and handled 191m parcels last year with revenues up 3.4 per cent over the 12 months ending December 2023.

“The Christmas peak season achieved record service levels, and we have seen parcel volumes through our Out of Home network more than double with the significant rise in demand for customer-to-customer services.

“Any decisions taken will be made in the best interest of our clients, colleagues, and key stakeholders. Yodel’s executive team remains wholly committed to the sustained growth of the business.”