Strong start for Business Post arm UK Mail
Business Post, the express delivery company, said yesterday that trading had been “very satisfactory” so far this year, and that its new UK Mail division had got off to strong start.
Earlier this year the company struck a landmark deal with Royal Mail to use its delivery network, its first step into the UK letters business. Since May 10 Business Post has collected and sorted mail from its business customers and paid Royal Mail 13p a letter to deliver them to domestic addresses, its annual meeting was told yesterday.
Business Post, through its UK Mail division, aims to offer business customers a lower price and better service than state-owned Royal Mail. The group said yesterday that it had handled almost 3.5m letters for its first two customers, Powergen and an unnamed mobile phone company, since its launched the UK Mail service nine weeks ago.
Paul Carvell, chief executive of Business Post, said that its deal with Royal Mail would allow it to make “good returns” but setting-up costs meant UK Mail would not record a profit until the next financial year.
Business Post Press Release 14 July
AGM Trading Update
Tuesday 13 July 2004
At the AGM today of Business Post Group plc, one of the UK’s leading express delivery companies, the Chairman, Peter Kane, will state:
“Trading for the Group in the new financial year has been very satisfactory. Volumes and yields in the first quarter were ahead of the equivalent period last year, service levels remain high, and costs remain tightly controlled. The Board expects further good progress in the current year.
“ UK Mail’s Business Class two day, time-definite mail service has made an exciting start. As we enter our ninth week of trading after UK Mail commenced operations, almost 3.5 million letters have been carried for our first two customers, Powergen and a subsidiary of a major mobile telephone provider. Service levels are high and both customers are pleased with the UK Mail offering. We are delighted with the interest shown from potential customers and expect a number of significant business wins in July and August.”
