Business Post Half Year Results

LONDON (AFX) – Business Post Group PLC, an express delivery group, said
profit before tax for the first half to Sept 30 2002 rose to 7.1 mln stg from
6.7 mln on a 16 pct rise in turnover to 72.9 mln stg.
In the six weeks to Nov 10, sales were ahead by 15 pct year-on-year, the
group added.
It said it continues to expect an improvement in profits for the full year.
The increase in turnover for the first half reflects strong growth in the
group’s core Express business, the rapid development of the newer and smaller
businesses, and the benefits of the contract with FedEx which commenced on Sept
3 2001, said the group.
Express parcel turnover increased by 8 pct, which the directors believe is
ahead of the industry average and reflects continuing high service performance
levels.
UK Mail proposes to offer a business mail service in the UK under its
licence from Postcomm, the independent postal industry regulator. This allows it
to collect mail from business customers and undertake the initial sorting and
trunking before delivery to the relevant Royal Mail delivery location for local
sorting and final delivery.
As stated last May, on April 11 UK Mail asked Postcomm to determine a tariff
for access to Royal Mail’s delivery network. Postcomm expects to publish its
determination for public consultation by, at the earliest, mid-December 2002.
The board said it does not believe that the delay in the commencement of UK
Mail’s operations will have a material effect on this year’s profits. “Whilst
frustrating, the slow rate of progress does not detract from the considerable
long-term attractions of this opportunity.”
Chairman Peter Kane said the board remains very confident about the group’s
long-term potential.
The board recommended a 5.7 pct increase in the interim dividend to 5.6
pence.
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