Business Post preliminary announcement of unaudited accounts
Tuesday 23 May 2006
Business Post Group plc announces unaudited results for the year ended 31 March 2006 in line with the Trading Update of 31 March 2006.
Financial
Revenue increased by 19% to £278.2m (2005: £233.3m).
Profit before tax and exceptional items totalled £11.7m (2005: £19.6m); reported pre-tax profit was £5.0m (2005: £19.6m).
Underlying trading was in line with expectations. In addition, pre-tax profits benefited from the reversal of IFRS charges for share-based incentives. The resultant IFRS credit of £0.4m compares with a charge of £1.0m in the prior year.
Exceptional costs totalled £6.7m (2005: £Nil), relating to the franchise network, management changes and restructuring.
Basic earnings per share before exceptional items totalled 15.5p (2005: 25.6p), or 6.9p (2005: 25.6p) after exceptional items.
The Board remains confident of the Group’s long term potential and the prospects for recovery. Accordingly, the Board proposes a final dividend of 10.8p (2005: 12.8p).
Operational
Parcel Services (Express; International; HomeServe) increased revenue by 5% to £195.8m, but pre-exceptional operating profits declined by 43% to £17.4m (2005: £30.3m). Operating profit was £11.1m (2005: £30.3m).
A comprehensive action plan is being implemented to improve the performance of Parcel Services; encouraging early progress is being achieved, with service levels in the first quarter of 2006 amongst the highest in the Company’s history.
Major contract with FedEx Express recently renewed, for a further five years from September 2006, on similar commercial terms.
UK Mail made further excellent progress, increasing revenue four-fold to £40.4m (2005: £10.2m), representing 15% of Group total (2005: 4%); operating profit was £3.2m (2005: breakeven).
Specialist Services (UK Pallets; Courier) made good progress, increasing revenue by 18% to £41.6m (2005: £35.3m) and pre-exceptional operating profit by 21% to £2.3m (2005: £1.9m). Operating profit was £2.1m (2005: £1.9m)
Guy Buswell, previously Managing Director of UK Mail, was appointed Group Chief Executive on 5 December 2005.
Steven Glew, previously Finance Director of Mothercare plc and Booker plc, appointed Group Finance Director with effect from 5 June 2006.
Peter Kane, Chairman, stated:
“We are pleased with the excellent progress made in UK Mail and Specialist Services during the period. However, it has been a very challenging year within Parcel Services, particularly in the second half. Following Guy Buswell’s appointment as Group Chief Executive in December, a comprehensive performance improvement plan has been developed, and is being rigorously implemented.
Encouraging early progress has been made, with service levels remaining high and the number of customers now on an upward trend. It will take time for the full benefit of our actions to show through but, with trading since the year end having been satisfactory, we expect underlying progress to be made in the coming year, albeit weighted to the second half.”
Business Post FY profits drop but confident of recovery prospects UPDATE
AFX UK Focus 05-23-2006
LONDON (AFX) – Business Post Group PLC turned in a pretax profit before exceptionals of 11.7 mln stg for the year to March 31 2006, down from 19.6 mln a year earlier but the board said it is confident of the group's long term potential and recovery prospects.
Revenue in the year under review increased by 19 pct to 278.2 mln stg from 233.3 mln.
The group also announced today that it has appointed Steven Glew finance director from June 5 to replace Peter Fitzwilliam. The board said Glew has an excellent record of delivering successful change programmes within quoted companies, most notably at Mothercare PLC and Booker PLC.
The board said that underlying trading in the year under review was in line with expectations. It incurred 6.7 mln stg of exceptional costs in the year, compared with nil the prior year, relating to the franchise network, management changes and restructuring.
It is proposing a final dividend of 10.8 pence, down from 12.8 pence in 2005 but reflecting the group's confidence.
In the year, Parcel Services increased revenue by 5 pct to 195.8 mln stg, but pre-exceptional operating profits declined by 43 pct to 17.4 mln. Operating profit was 11.1 mln stg, down from 30.3 mln.
A comprehensive action plan is being implemented to improve the performance of Parcel Services and the group said encouraging early progress is being achieved, with service levels in the first quarter of 2006 amongst the highest in the company's history.
Also in the year under review UK Mail made further excellent progress, increasing revenue four-fold to 40.4 mln stg and operating profit to 3.2 mln stg from breakeven in 2005.
Business Post said its Specialist Services made good progress, increasing revenue by 18 pct to 41.6 mln stg and pre-exceptional operating profit by 21 pct to 2.3 mln.
Chairman Peter Kane said the board is pleased with the excellent progress made in UK Mail and Specialist Services during the period. However, it has been a very challenging year within Parcel Services, particularly in the second half.
The group is now rigorously implementing a comprehensive performance improvement plan following Guy Buswell's appointment as group chief executive in December.
Encouraging early progress has been made, with service levels remaining high and the number of customers now on an upward trend. Kane said it will take time for the full benefit of actions to show through but, with trading since the year end having been satisfactory, the board expects underlying progress to be made in the coming year, albeit weighted to the second half.
