Carvell steps up to stop the slide

Paul Carvell is back, nine months after his departure as chief executive of Business Post Group.

He became CEO at Business Direct Group on Monday, relinquishing the role of non-executive chairman which he has held for several weeks.

Carvell, 51, tells Motor Transport that his invitation came not least from Tim Houston, the founder and 42 per cent shareholder who was CEO but stays on as a director.

Carvell has agreed “a package designed to incentivise me to get the business back into shape”. Carvell was granted options over 3.25 million ordinary 5p shares with an exercise price of 17p, most of which are exercisable after 12 months.

AIM-listed Business Direct’s share price more than halved in late 2005 and has failed to recover, although the firm has just reached break-even on a monthly basis. Market capitalisation last week was (pounds sterling)6.03m.

Carvell tells MT he was looking at private equity opportunities. “I’ve enjoyed the private equity approach – but I am so pleased to get back and get stuck in again,” he says. And he was immediately leading from the front. On Monday, the firm’s home page featured an invitation for those interested to call him “to discuss how we can help your business”. A priority is to develop a new three-year plan; he has half a dozen additional business areas that he wants to look at, he says.

Carvell says Business Direct gets most of its revenue from courier services: technical; two-man; and same-day. These generate an annualised (pounds sterling)12m turnover and that can expand greatly says Carvell, who notes that he took Business Post’s UKToday to a highly profitable, (pounds sterling)15m turnover from a standing start.

Business Direct’s Parcel-Xchange, which provides secure lockers used by out-based service engineers, has an annualised turnover of (pounds sterling)5m. It is now “on the cusp” of fast growth and could double turnover over the next year, he says.

In 2005, group turnover soared to (pounds sterling)13.5m from (pounds sterling)3.77m but pre-tax losses also rose to (pounds sterling)2.99m from (pounds sterling)1.03m.

Business Direct management includes Simon Bliss, founder of NCN Express Parcels, Concord Couriers, Concord Logistics and also of the National Courier Association; and David Whitaker, formerly with Securicor Pony Express and Lynx.