Royal Mail switch too slow for Business Post

Parcel delivery group Business Post yesterday said it was frustrated at the lack of progress in opening up the Royal Mail to competition from the private sector.

It is one of the companies proposing to collect and sort bulk mail on behalf of business customers before handing it over to the Royal Mail’s postmen for delivery over “the final mile”. But the launch of the service has been delayed while negotiations continue on the charge the Royal Mail will make for access to its network. The terms of the contract are due to be published by industry regulator Postcomm next month.

Chief executive Paul Carvell said: “While frustrating, the slow progress does not detract from the long-term attractions of this opportunity.”

He hopes to sign up the first customers by March, three months later than originally planned, and believes the new service could generate sales worth £150million within three years.

Half-year pre-tax profits to the end of September were £7.1million, up from £6.7million, on turnover nearly £10million higher at £72.9million. The shares rose 14 dp to 568 dp.The growth was driven by expansion of its Express delivery service and last year’s tie-up with US delivery giant FedEx.