Parcel carrier City Link has cut its losses almost in half during the past year and expects the improvements to continue.

The Coventry-based firm made a £14 million financial loss for the year ending December 2013, representing a £13.5 million improvement over 2012.

City Link reported that it has suffered a £36 million decline in revenue as a result of its decision to drop loss-making accounts.

Private equity firm Better Capital acquired the carrier in April 2013, pledging extra investment to revive the company's fortunes.

Investments made by Better Capital include the development and launch of an estimated time of delivery feature, along with 86 double deck and 85 single deck trunker trailers.

Dave Smith, City Link chief executive officer, is quoted by Logistics Manager as saying: "City Link remains a business in turnaround, and our results for 2013 represent a great step forward on that journey."