Hays sees 'Evolution not Revolution' of UK mail market
Bob Lawson, chairman and acting chief exective of Hays PLC, the business services group, said he believes the UK mail market is facing a period of evolution rather than revolution despite the crisis facing Consignia, the former Royal Mail group.
Hays is the largest private mail operator in the UK and is keen to win a bigger share of the 750 mln stg business-to-business time-critical market.
Speaking in a conference call Lawson told reporters: “This whole development of the mail market is evolutionary and it is going to take time. There are no quick revolutionary wins in this thing, it’s going to be long term evolution because what we’re impacting is major corporations deciding to resource and handle their mail differently.”
Last September Postcomm, the independent postal regulator, granted three interim licences to Hays to introduce new services.
These new services are being introduced progressively and “to the door” delivery services have been launched by the group in Central London, Edinburgh and Manchester.
“It’s small at the moment, but the customer feedback has been very good,” maintained Lawson.
But he was critical of Postcomm for only granting interim licences.
“There is a fear that these interim licences may not be renewed and therefore customers would have to face change again,” Lawson explained. “The interim nature doesn’t help the development of the market. We need permanent licences to really have an impact.”
The chairman played down the significance of a report in today’s Financial Times that Postcomm is preparing to water down or slow down its plan to end Consignia’s monopoly to save the group from possible collapse. It is reportedly losing 1.5 mln stg a day.
“Fundamentally I think the government is committed to liberalising the network. I don’t think it’s in anybody’s interest in doing that that Consignia is destroyed,” he said.
Lawson said the major problem the market faces is uncertainty. “Shifting your mail activity which is critical to your business is not something you are going to do lightly and you’re certainly not going to make a major shift if there is uncertainty,” he explained.
But, he said he hoped the completion of Postcomm’s consultation period this Spring would end confusion.
“Consignia will know where they are, we’ll know where we are, as will all the other private operators and we can move forward.”
Lawson was speaking after Hays released its six months to Dec 31 2001 results.
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