Chief Executive of Business Post resigns
Business Post Group announces that Paul Carvell, Chief Executive, has resigned from the Group with immediate effect to pursue other opportunities. His role will be assumed by Guy Buswell, 44, who has been Managing Director of UK Mail since July 2002.
Peter Kane, Chairman, commented “Since his arrival in February 2001, Paul has made a key contribution to the development of the Group and its broadening range of services. Guy has been a Board Director since 1998 and his experience of the business and considerable success in the establishment of UK Mail as the leading alternative to the Royal Mail qualify him to take the Group forward as Chief Executive.”
Business Post chief exits as value falls
Financial Times UK, London Ed1, Sec. COMPANIES UK, p 31 12-06-2005
By By PHILIP STAFFORD
Paul Carvell, chief executive of Business Post Group, yesterday resigned in the wake of two profit warnings in three months at the UK’s fourth-biggest mail delivery operator.
Business Post lost 50 per cent of its market value in less than four months after it blamed the slowing economy for having to issue profit warnings in September and November. In July, Business Post had told its annual meeting that it was trading in line with expectations and its shares hit 685p.
“If a company has profit warnings back-to-back and the share price falls a long way, it’s not a surprise that people start to question the management team,” said one analyst.
Mr Carvell will be replaced by Guy Buswell, who has been managing director of its UK Mail business since July 2002.
“Guy has been a board director since 1998 and his experience of the business and considerable success in the establishment of UK Mail as the leading alternative to the Royal Mail qualify him to take the group forward as chief executive,” the company said.
At its interim results three weeks ago, Business Post warned full-year results would be about 20 per cent below market expectations because of poor trading at its Express business-to-business division.
But the group’s Mail subsidiary was one of its few bright spots. The business is licensed by the Postal Services Commission to provide mail services in conjunction with Royal Mail and has seen rapid growth in the past year.
Interim figures showed Mail revenue jumped six-fold to Pounds 14.6m and accounted for 11 per cent of total turnover, compared with 2 per cent in 2004. The business made an operating profit of Pounds 1.1m, compared with a loss of Pounds 500,000 last time. The shares fell 9 1/2p to 332 1/2p.
