Business Post Chairmans AGM Statement

At the AGM today of Business Post Group plc, one of the UK’s leading express delivery companies, the Chairman, Peter Kane, issued the following update on current trading and prospects:

“I am pleased to report an encouraging start to the financial year. Parcel revenues in the three months ended 30 June 2002 were 14% ahead of the equivalent period in the prior year. In addition to the impact of the contract with FedEx, which commenced in September 2001, revenues also benefited from strong levels of new business and improved levels of customer retention, more than offsetting the effects of the turnover lost following the collapse of Tiny Computers at the end of January 2002.

Our strategic investments, notably in our franchise network and our newer and smaller businesses (HomeServe, International, UK Today and UK Mail), have increased our costs, as expected. However, our cost base remains tightly managed, service performance levels remain very high and, as a consequence, our overall results to date are in line with plan.

UK Today, our nationwide same-day courier business, is currently operating from 19 of our depots (ahead of schedule) and is now in profit.

The results of our initial trial of UK Pallet Express, a new priority service for pallet-based consignments, have been encouraging. In order to exploit opportunities for the further development of this service, we have appointed a sector specialist as Managing Director to run this as a separate business rather than as part of Express.

Initiatives are being pursued vigorously across all areas of the Group and our strategic investments are already yielding results. The Board continues to believe that further progress can be expected in the current year”.

Notes for Editors:
Business Post is estimated to be the UK’s joint fourth largest express delivery company with a market share that has risen progressively to over 6% from a national operational hub in Birmingham and from 63 depots, of which 43 are franchised. Business Post operates primarily at the top end of the business-to-business market, focusing mainly on overnight deliveries via its Express network, with a customer base which exceeds 18,000 business accounts.

In addition to Express, Business Post’s other businesses are HomeServe, International, UK Today and UK Mail. HomeServe is the Group’s business-to-consumer parcels business, and provides a high quality next day service to residential addresses. International is responsible for all shipments coming into and leaving the UK and Eire, its business having been boosted by a contract with FedEx, the world’s largest express transportation company, to be its UK Global Service Participant.

UK Today is the Group’s nationwide same-day courier service, and UK Mail is Business Post’s business mail subsidiary. UK Mail has been granted a one-year interim licence by the independent postal services regulator, Postcomm, for “downstream” access to Royal Mail’s local delivery network. Charges for access to Royal Mail’s network are currently in the process of being determined by Postcomm.