Ownership restructure for parcels network

The change has been facilitated by investment from Barclays and paves the way for future growth and service enhancements to its small and medium-sized business customers.

The restructure sees Cannock-based The APC, which previously operated as APC Overnight and employs 600 at its head office and sortation sites at Cannock and Essington, 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.

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 103 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.”

"It is a proud day for us. We have got people working for us who have now got ownership. It means they will have another level of attachment they didn't have before," added Mr Smith.

The company, which started as the Alternative Parcel Company, recently celebrated its 25th anniversary.

It had a successful 2019, with 3.5 per cent year-on-year growth in turnover to £109 million, and a total gross profit of £15.6m.

It saw a boom in its ‘fragile and 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.

"We are very big in craft beer and cup cake manufacturing.We have become the go to guys for craft beer. We now have a specialist area for craft beer that has had to be extended to cope with increased demand," explained Mr Smith.

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

Andy Mayne, relationship director at Barclays, said: “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.”

Mr Smith said it was a case of the company going back to its original model.

"As we grew we had members join us that didn't have a share in us and our sites in Cannock and Essington.

"We are also bringing members of staff of 10 years in as part of the share option scheme," he added.