Yodel says it is confident that the integration of HDNL and DHL's domestic parcel operation will make it a billion pound turnover business. HDNL acquired the domestic B2B and B2C businesses of DHL Express (UK) in January and rebranded the combined operations Yodel in May.
Speaking exclusively to MT, Yodel marketing director Adam Smith and sales director Jerry Kane say they expect double-digit revenue growth over the next few years, on top of an annual turnover of about £600m. Kane says it will take three years to completely integrate the businesses.
"Already in 2010 we have commercially delivered in terms of new contracts, and the company is looking to join these divisions operationally in 2012," he says.
"Since the acquisition we have won a significant contract with a retailer that previously used four to five parcel carriers. As separate businesses, none of us could cater for all the client's needs.
"However, collectively, Yodel can offer an at home service, two-man home delivery and 7pm-9pm delivery window slots, to name but a few," says Kane.
Smith says:"Our aspiration is to be in the region of a billion-pound turnover business."
Profit will also follow, he says: "Not a lot of carriers are making big profits at the moment, so we believe by driving two big businesses together, we are on a strong platform for financial growth because we have the means to offer customers everything."
The firm is not shying away from investments to strengthen the brand.
Large scale investments have been made in IT and sales teams, and new contracts, including a two year deal with retailer La Senza signed in June, are being won.
"Delivery choice is one of the main things customers are asking for, and we believe we are now in a great position to offer one of the widest range of options in the market," Smith concludes.
Yodel will begin the roll-out of its newly liveried vehicles in October and has taken delivery of 400 new Mercedes Benz Eco-Start Sprinters to operate out of 12 depots in the south of England and Northern Ireland.
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