City Link moved a step closer to profitability in the third quarter – cutting its operating loss by 19 per cent to £5.5m. Sales were up 2.4 per cent to £76.2m.
Alan Brown, chief executive officer of parent company Rentokil Initial, said: “City Link’s operational recovery continued during Q3 with a 12 per cent year-on-year reduction in cost per delivery.
“Volume grew 15 per cent and operating losses fell by 19 per cent year on year, though both were adversely impacted by lower than expected demand during the Olympics.
“We have also continued to see a reduction in revenue per consignment as a result of adverse customer mix. The impact of this is now expected to result in a small loss for Q4.”
For the first nine months of the year, City link reported a loss of £24m, an improvement of 2.4 per cent, on sales up 3.1 per cent to £225.7m.
Brown said: “We continue to invest strongly in capability and in market position. We are optimistic about both our innovation and our acquisition pipeline, though cautious in respect of trading. Nevertheless we anticipate further year-on-year improvement in profit performance at constant exchange rates in Q4.”
