Hermes Parcelnet delivers 10% sales increase

HermesParcelnet has delivered a 10% increase on annual distribution sales, up from £510m to £563m.

The delivery firm, which is head-quartered at Morley in Leeds, has today published its annual accounts for the year ended 28 February, in which profit before tax stood at £34m, up from £33m in the previous year. The firm said its profit margins had dropped due to increased competition in the marketplace.

It added there had been an increasing level of myHermes traffic and a sales volume growth through international deliveries.

Director Robert Edison said: “Changes in customer behaviour, new retail sales formats and multi-channel offers are driving year on year parcel delivery sector growth. In response, the business has increased its scale, investing in new delivery capacity, network infrastructure and supporting the business processes necessary to maintain controlled growth and an industry leading customer doorstep experience.”

The cor business provides next day, 24-hour and 48-hour services for large corporate firms, SMEs and consumers on the myHermes website. It also has a Parcelshop nework.

During its 17/18 financial year, it plans to roll out its handheld terminal to couriers and the shop network. Its Rugby delivery hub is also due to open.

Hermes Parcelnet is also preparing for increased competition from the privatisation of Royal Mail.

 

 

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