Evri Awards £108m Payout Despite Repeated Service Failures

Britain’s most criticised parcel delivery firm, Evri, distributed a £108 million dividend last year, only months after its acquisition by US private equity giant Apollo. This controversial payout occurred during the same period the company was once again rated the UK’s worst courier by regulator Ofcom, a title it retained for the third consecutive year as of October.

The dividend was paid to Evri’s parent company to service debts linked to its former owner, Advent, and to cover costs related to Apollo’s £2.7 billion takeover deal, completed in August. This financial manoeuvre has come to light as scrutiny of Evri’s operational standards intensifies. Customer complaints persist, with more than forty percent of respondents expressing dissatisfaction in the recent Ofcom survey, citing issues such as delivery delays and parcels abandoned in inappropriate locations.

Consumer advocates remain critical. Lisa Webb, consumer law expert at Which, noted recurring problems among delivery firms, with one in four shoppers facing complications last Christmas. She emphasised the importance of adequate customer service, especially during peak periods. According to Evri, the business has invested £100 million towards service and operations over the past three years, including a dedicated £30 million for the current festive season. The company also referenced a Citizens Advice league table ranking, positioning Evri joint third out of five national carriers, alongside DPD and ahead of Yodel.

According to representatives, the group has not paid dividends to shareholders in any of the last three years, despite the significant dividend paid to its parent group. The surging demand for parcel delivery in the UK has contributed to both operational strains and financial windfalls for Evri and its competitors, with a record 4.2 billion parcels handled nationwide last year, signalling the ongoing effects of the e-commerce boom.

Despite a litany of complaints, Evri reported record pre-tax profits of £176 million last year, supported by revenues of £1.9 billion and an eleven percent increase in parcel traffic, surpassing 800 million items. Growth has continued into the current financial year, and following the acquisition of DHL’s e-commerce business, Evri now manages over one billion parcels annually, representing a quarter of the UK market. A further acquisition of Coll8 aims to enhance cross-border logistics, particularly in Ireland and through the European Union.

A spokesperson highlighted Citizens Advice’s recognition of Evri’s improvement trajectory in its independent assessment, while underscoring decades of investment totalling £250 million to support operational resilience and service enhancements. With parcel volumes rising consistently, Evri asserts this reflects sustained confidence from clients and customers in its capacity to meet mounting demand.