City Link reduces Q1 losses
City Link reduced its losses in the first quarter of 2009 despite a 10.7% revenue drop and an 8% fall in volumes, parent group Rentokil Initial said in its recent Q1 trading results.
City Link reduced its losses in the first quarter of 2009 despite a 10.7% revenue drop and an 8% fall in volumes, parent group Rentokil Initial said in its recent Q1 trading results.
City Link’s first quarter operating loss of £6.1m was 60.4% less than the £15.4m reported in the first quarter of last year, and is broadly similar to last year’s underlying loss after taking account of £9.1m of unusual costs booked last year.
This was achieved despite corresponding revenues being 10.7% lower than Q1, 2008 at £85m. Compared to Q4 2008, total operating costs fell by £10.1m (10%), albeit on revenue some £12.2m below the Q4 2008 seasonal peak. Q1 parcels volumes were down 8.1% on Q1 2008 and revenue per consignment (RPC) weakened by 3.8% on Q1 2008.
City Link’s customer base has remained broadly consistent with recent quarters although many are trading at lower levels, Rentokil Initial said. Customer Service levels improved further during the quarter and are now consistently above 99%. Implementation of actions to restore customer call handling to depots is proceeding to plan and will be completed on schedule by the end of Q2.
The delivery company continued to target operating costs during the first quarter. Delivery vehicle fleet numbers were reduced by approximately 13% and total employee numbers fell by 8%. The number of depots was reduced from 98 to 91.
