APC Overnight records over 18% growth in profits as it celebrates 25 years
In the year that APC Overnight celebrated its 25th anniversary as the UK’s largest independent parcel delivery network, the business has today reported strong results for the 2019/20 financial year*, with 18.2% year-on-year growth in gross profit, totalling £18.5 million.
Continuing on its success from the previous year, and further to significant investment in additional sortation capacity at the Cannock hub, this year again saw notable growth in The APC’s ‘Fragile & Liquid’ services, which allowed the business to meet continued consumer demand across the UK for products like craft beers and gins.
To further support customers and in response to demand across its network, The APC also made considerable investment in the second half of the year with the introduction of software and hardware to optimise its main sortation equipment at Cannock. This coupled with the new fragile sortation capacity has resulted in improved productivity.
Supporting its success, The APC also recently announced an ownership restructure, which significantly expands on its share base. Concluding on 3rd March, the new structure allows a return for long standing shareholders, as well as an opportunity for continued investment in the future of the business. It also provides the opportunity for all depots to take a shareholding and share options for all long-standing employees with over 10 years’ service.
Jonathan Smith, Chief Executive at APC Overnight, said:
“As we celebrated 25 years, the restructure allowed us to embrace one of the founding principles of the business - to offer all involved in the company an opportunity to partake in the ownership of the company.
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 our people, creating opportunities for them that lay solid foundations for their future with the business.”
Following the successes of the financial year, The APC had to quickly adapt to the initial impact of COVID-19. The global pandemic has seen the logistics industry thrown into the limelight, as delivery companies have continued to take on an integral role in keeping essential items moving and supplying communities with the goods they rely on.
Whilst many industries have seen considerable downturns as a result of the pandemic, APC Overnight, like many in the logistics industry, continues to expand, providing a critical service to SMEs across the country as they adapt their businesses and accelerate their online presence to meet the changing consumer demands.
The food and drink sector specifically has shown significant growth across the network, with many SMEs quickly adapting their business models to meet increased demands.
Jonathan Smith, said:
“The initial impact of the pandemic, quickly resulted in increased demand for parcel services, driven by consumer e-commerce activity and the preference for home delivery. Across the business we have seen a notable shift in purchasing habits, with B2C previously making up around 50% of all deliveries, and today making up around 75%.
We anticipate that this preference will remain the norm for the foreseeable future and our role is to support our SME customers by recognising these changing dynamics of consumer behaviour and ensuring that our customers have access to their communities as they prepare for a further surge in online shopping.”
The APC’s focus on a national level is now on Christmas peak - and with lockdown measures still in place and Christmas around the corner - the business is preparing for what is likely to be a record-breaking period of online shopping.
As part of these preparations, the business recently announced its biggest ever recruitment drive, with plans to hire over 100 new members of staff. The roles – all of which are permanent - vary from drivers, forklift truck drivers, and warehouse operatives, to customer services staff and IT.
The APC has invested heavily in its workforce this year, reflecting the focus it places on its people and their role in the company’s success. The business has also welcomed the Chancellors efforts this year to help tackle youth unemployment - in a time where many are facing job uncertainty - embracing efforts like the Kickstart scheme.
Corina Forman, HR Director at APC Overnight, said:
“Young workers are the future of our businesses. At The APC we look to provide long-term career prospects for the young, providing training and upskilling opportunities to not only ensure staff continue to feel recognised for all their efforts and maintain a sense of job security, but also to help grow the next generation of leaders.”
Jonathan Smith, continues:
“As a business we’re in great shape, and despite the recent challenges of the pandemic, we’ve worked hard to maintain job security and opportunities for all our workers. There is no doubt that the industry will continue to thrive in the coming months and as we move forwards, I’m committed to ensuring our staff - and others who may be considering a role in logistics - continue to see the long-term career opportunities available to them.”
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