Now UK Mail picks up the post at HSBC
HSBC has become the latest major bank to give Royal Mail the sack.
UK Mail, the postal arm of parcels courier Business Post, said today it now acts for three of the five High Street banks after HSBC joined Royal Bank of Scotland in ditching Royal Mail for the sorting for delivery of its bank statements.
Lloyds TSB had already switched to UK Mail’s arch-rival, the Dutch postal group TNT, but UK Mail today announced it had also picked up part of the Lloyds TSB contract.
Major customers such as the Department of Work and Pensions, the BBC, Vodafone, and Powergen helped UK Mail revenues soar from GBP 40m to GBP 90m in the year to the end of March, doubling profits to GBP 6.4m.
That compares with UK Mail forecasts at its launch in 2004 that within three years it would make GBP 10m on revenues of GBP 150m – about 3% of the GBP 5bn market.
Chief executive Guy Buswell said UK Mail missed the targets because VAT issues meant part of the market remained in favour of Royal Mail. Business Post’s group pre-tax profits doubled to GBP 9.8m but the dividend is pegged at 10.8p.
