Business Post keen to expand
Business Post is planning further growth in its letters division to handle unsorted mail after announcing a steady rise in turnover across its various delivery operations.
The mail delivery company yesterday reported a rise in group pre-tax profit to Pounds 20m for the year to March 31 compared with Pounds 18.7m a year earlier. Turnover increased 21 per cent to Pounds 233.3m.
Paul Carvell, chief executive, said he expected the company to meet forecasts of a 25 per cent increase in profit for the coming year.
Business Post was increasing sales in part by packaging together its different services for big customers, particularly those in the electronics and computer sectors, Mr Carvell added.
UK Mail, the letters business, which moved early into the deregulated UK postal market, made a small profit on turnover of Pounds 10.2m, less than 11 months after starting trading.
The division opened its first mail sorting machine in Swindon and plans to install others in Leeds, Glasgow, Birmingham and London.
Royal Mail’s record results were a good omen for UK Mail, according to Mr Carvell. In particular he welcomed the bonuses paid to Royal Mail staff, which are contracted to deliver letters on behalf of UK Mail. “The more motivated those people are, the better it is for us,” Mr Carvell said.
Business Post’s full-year dividend rose to 19.2p (18p).
