Notes/statistics from meeting with Vanessa Leeson

1. Turnover currently £270 million

2. 3-4% pa growth this year

3. now down to 5,000 employees with a plan to get down to 4,000 by 2004/05

4. 70% of top 20 accounts are B 2 C

5. 50% overall B 2 C in business

6. 7% overall unable to effect delivery first time – means 14% for PAD’s

7. Now down to below 9% attrition rate of customers

8. Have taken Rob Peto from GeoPost to install Customer Profitability systems – is doing well with the project

9. Business focus is:

a. B 2 B – currently very close to 3 very large potentials

b. Adding value to the B 2 C package – focus around notification of delivery day and time to the sender

c. Focus on SME’s

d. Bring more flexibility to depot operations

e. International development – have appointed 3 RGM’s re[porting to an International Mgr who reports to Dom McKenna

10. Break even is still the objective by 2004-05 and + £25 million the year after

11. Planning also to sort out some structural issues such as:

a. VAT

b. Interest payment on accumulated losses – costs circa £45 million a year to Parcelforce!