UK Business Post experiences more suffering as trading fears persist

FEARS that trading at Business Post Group may have deteriorated since last month’s shock profits warning pulled the FTSE 250 mail operator down a further 5 per cent.

At the time of last month’s alert, the company said the rate of decline in volumes in its UK parcel delivery service had slowed from August’s trough. However, Altium Securities remains cautious, suggesting that continued gloom from the retail and technology sectors indicates that the key Christmas period may be poor. Further, Andrew Nussey, analyst, believes there is a risk that selective price rises in delivery charges will not stick as business customers become more cost conscious.

With Altium also awaiting clarity on the company’s dividend policy, it has cut its target from 450p to 400p. Business Post, which files interims on November 15, dipped 21p at 400p.