Business Post has 10 pct of UK mail

Business Post, the parcel and mail delivery group, is now handling one in 10 mail items posted in the UK after winning contracts to deal with letters and packages for large business mailers.
MBNA, the credit card company, and Norwich Union, Britain’s largest insurer, were among new customers for the group’s UK Mail postal operation, contributing to an increase in its share of the retail mail market from 7.5 per cent to 10 per cent in the last quarter of 2007.
UK Mail collects and sorts post from bulk mailers, before handing it over to Royal Mail for delivery over “the final mile” to homes and businesses around the country. Other customers include BBC TV Licensing, Carphone Warehouse, Royal Bank of Scotland and the Department for Work and Pensions.
Mail revenues during the three months to December 31 were up 60 per cent on the previous year, the group said in an interim management statement following the close of its third quarter.
The parcels arm also grew over the quarter with underlying revenues up 6 per cent. This contrasted with the experience at Rentokil Initial, which blamed falling volumes at its City Link parcel delivery service when it issued a profits warning in December.
Business Post shares have fallen from a high of 514p in June, closing on Wednesday at 250½p, up 12p.
The group will report results for the year to March 31 on May 21.