Business Post says Q1 trading in line with expectations
Business Post Group PLC said first quarter trading was satisfactory and in line
with the board's expectations.
In a statement prepared for today's AGM, chairman Peter Kane said the performance improvement initiatives within Parcel Services continue to make progress.
Parcel Services, comprising the overnight business-to-business, business-to-consumer, and cross-border parcel delivery activities, continues to
make steady progress following the difficulties experienced in 2005, Kane added.
He said service levels have remained at a very high standard and the programme of reducing unit costs within the Linehaul operation is proceeding to plan.
Further progress has also been made in improving the performance of the franchise network.
The group has brought a further two loss making franchises back into corporate ownership. It said the operating losses of the transferred franchises will be absorbed within the results of Parcel Services.
Kane also said UK Mail, which competes with Royal Mail in mail delivery services, continues to demonstrate strong growth. The group handled 70 mln mail items in June.
And Specialist Services, comprising the nationwide palletised goods delivery service and the same-day Courier activities (UK Pallets and UK Today), is benefiting from the recent management restructuring initiatives and is trading in line with expectations, Kane said.
'The board continues to expect progress in the underlying results in the coming year, albeit weighted to the second half as previously advised,' he concluded.
11 July 2006
AGM Statement
The Annual General Meeting of Business Post Group plc, the leading parcel and mail delivery company, will be held at 12.00 pm today. At the meeting, Peter Kane, Chairman, will make the following statement regarding current trading:
“Trading in the first quarter of the current year was satisfactory and in line with the Board’s expectations, and the performance improvement initiatives within Parcel Services continue to make progress.
Parcel Services, comprising our overnight business-to-business, business-to-consumer, and cross-border parcel delivery activities, continues to make steady progress following the difficulties experienced in 2005. Service levels have remained at a very high standard, demonstrating the effectiveness of the new operational team and cultural changes achieved within the network. The programme of reducing unit costs within the Linehaul operation is proceeding to plan.
Further progress has been made in improving the performance of the franchise network. A further two loss making franchises have been brought back into corporate ownership. The operating losses of the transferred franchises will be absorbed within the results of Parcel Services. We have now transferred 15 loss-making franchises into corporate ownership leaving 19 franchises within our overall network of 59 sites.
UK Mail, the leading competitor to Royal Mail in mail delivery services, continues to demonstrate strong growth. We handled 70m mail items in June, reflecting our very strong market position.
Specialist Services, comprising the nationwide palletised goods delivery service and the same-day Courier activities (UK Pallets and UK Today), is benefiting from the recent management restructuring initiatives and is trading in line with our expectations.
The Board continues to expect progress in the underlying results in the coming year, albeit weighted to the second half as previously advised.”
