Rise of online shopping delivers further sales and profits boost at Hermes

Hermes Parcelnet, the delivery firm which is headquartered in Leeds, has reported an 18% rise in annual distribution sales as it continues to increase it scale to meet the rise of online deliveries brought about by changes in customer behaviour.

Posting annual results to February 28 2018, the delivery firm said its revenues stood at £665.5m, a rise from £563m in 2017, and reported pre-tax profits of £37.3m, up from £34.8m.

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

It said that new retail clients and businesses had been added to their client list during the year and expects further expansion of its corporate client portfolio.

The firm outlined Brexit negotiations as a risk to the business, stating “The impact of this is already being felt in availability of labour as uncertainty and weakness of the pound makes the UK less attractive to EU citizens. Any decreased consumer confidence will negatively impact parcel volumes,” said Hermes.