Diamond Logistics has detailed how more than £3m of cumulative investment in proprietary technology supports a national fulfilment and delivery network that now reports over £12m in annualised revenue. The business, founded by Kate Lester, says its Despatchlab platform connects warehouse operations, inventory, carrier selection, tracking, returns and marketplace integrations. The investment was made over several years, not announced as a new £3m funding round this week.
Diamond operates through a network of more than 30 locations and supports over 1,000 customers, processing upwards of 100,000 transactions a month, according to its account of the business. The model combines local logistics operators with shared technology, carrier arrangements and commercial infrastructure. Partners retain a local operational role while accessing systems and relationships that would be more expensive or difficult to build independently. The company offers fulfilment and delivery services across domestic and international markets.
The decision to build rather than buy software emerged as the company expanded beyond the systems it could readily obtain from suppliers. Lester joined Cranfield School of Management’s Business Growth Programme in 2017, when Diamond’s turnover was around £5m. As revenue passed £7m, management increasingly viewed fragmented technology as a constraint on further expansion. It wanted to coordinate warehousing, stock management, multiple carriers and customer-facing information in a single operating environment.
Building a platform in-house carries a different risk profile from buying established software. Development requires capital before the full benefits are visible, technical employees must maintain and update the system, and custom technology can create dependence on a narrower knowledge base. Standard software may provide proven functionality more quickly, but it can leave a business adapting its operating processes to a supplier’s product. For Diamond, the commercial argument rested on having particular integrations and workflows that reflected its own network.
Despatchlab can allocate shipments among multiple carriers using factors such as destination, service and price. That can offer resilience when one carrier is disrupted or unable to meet a particular requirement. Integrating warehousing and delivery information can also reduce the need to transfer orders manually between systems. However, the release does not provide an independently audited calculation of savings generated by the platform, and technology investment alone cannot establish the cause of the company’s revenue growth.
Lester described the importance of questioning major investment decisions rather than becoming emotionally attached to them. She also linked the company’s progression to reducing reliance on the founder as the answer to every operational problem. This management change is relevant to scaling an owner-led enterprise: a larger network needs repeatable processes, clear accountability and people able to resolve issues without constant direction from the centre.
Annualised figures need particular care in comparisons with historic completed-year results. A monthly or recent-period run rate can suggest the current size of operations but will not necessarily equal full-year turnover, particularly if sales are seasonal or a network has expanded during the year. Diamond’s projected 2026 EBITDA therefore provides a more useful profitability target, though it too remains a management forecast. Network growth can increase transaction volume and geographic reach while requiring further training, partner support and technology maintenance. The operational test is whether additional sites can handle more customer work without a corresponding rise in complexity, service failures or working-capital pressure.
Diamond forecasts approximately £12m of revenue and £1m of EBITDA in 2026, compared with approximately £8m and £500,000 in 2023. These figures come from the company, and its current annualised revenue is a run rate rather than completed-year turnover. The network now spans more than 30 locations, but management’s stated focus is on giving local operators shared systems, carrier choice and the ability to handle growth without every operational decision reverting to the founder. The upcoming full-year figures will offer the next financial measure of that approach.
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