APC Overnight announces ownership restructure funded by Barclays
The APC, the UK’s only independent delivery network, has announced an ownership restructure that significantly expands upon its existing share base. This change has been facilitated by investment from Barclays and paves the way for future growth and service enhancements to its SME customers.
The restructure sees The APC return to embrace one of its founding principles whereby every depot within its network has the opportunity to own a part of the company. The restructure also allows employees of the company to become shareholders.
The APC prides itself on the experience and knowledge of its long-serving employees, which sets it apart from competitors and is essential for maintaining the outstanding levels of service for which it is known amongst customers. This restructure recognises the important contribution of people throughout the company and creates opportunities for shared ownership schemes among its long-serving colleagues as well as depots that do not currently hold shares in the business.
Barclays’ investment comes off the back of a strong 12 year relationship with The APC, highlighting its commitment to backing and supporting UK businesses in both successful, and more challenging times.
The company, which recently celebrated its 25th anniversary, had a successful 2019, with 3.5 per cent year-on-year growth in turnover to £109 million, and a total gross profit of £15.6 million. It saw a boom in its ‘Fragile & Liquids’ sortation following investment in 2019 to expand its sortation facilities, enabling it to process more fragile deliveries per hour in line with a rise in consumer demand amongst online retailers for these kinds of products.
2020 will see The APC look to expand its capacity, customer base and services in line with ever changing market needs. With over 100 locations across the UK, the company aims to build on the potential of its depots, particularly, through expanding their same-day delivery capabilities
Jonathan Smith, Chief Executive at APC Overnight, said:
“This ownership restructure unlocks a whole range of opportunities for The APC, enabling us to build on our unique strengths, continue our commitment to better serve the UK’s SMEs, and further develop our existing relationship with Barclays. In focusing on the future, we are keeping our customers and people at the forefront of plans.
“Over the last 25 years, our dedicated network of depots across the UK has been the driving force behind our success. Giving our depots the opportunity to become shareholders celebrates the key role they play in enabling our services as the only carrier exclusively focused on serving the needs of SMEs. This unique position in the marketplace is a source of immense pride for us, and something that we will continue to deliver over the next 25 years of The APC.”
Andy Mayne, Relationship Director at Barclays commented:
“Having supported APC over the last 12 years we are delighted to continue to be their funding partner for the next phase of their growth, building on the foundations of an already successful business model.”
Coolin Desai, Partner at PwC, which advised The APC, said:
"We are delighted to have advised The APC on broadening the shareholder base and refinancing for growth in line with its core values. The business has developed substantially since inception and this extended partnership with Barclays positions The APC well for further expansion of the services provided to SMEs. We look forward to continuing to support as retained advisor to The APC group."
Louise Finnie, Partner at Eversheds Sutherland, which advised The APC, said:
“Having worked with the company and its shareholders for over 15 years, we are proud to have advised on this important chapter in The APC story. Allowing shareholders to realise some value for 25 years of hard work, whilst structuring for a more diverse shareholder base going forward, is an exciting step to enable the company to grow further, and we look forward to continuing to support The APC on its journey.”
The APC provides national parcel delivery and collection services through its unique network of privately-owned depots, which specialise in the provision of exceptional services to SME customers across the UK. Sharing in the ownership of the company will strengthen collaboration and commitment across the network, ensuring the SME customer base remains well served for the future.