Year: 2005

UK Rentokil Initial’s parcels business plans to cease franchising

Rentokil Initial has today announced that its parcels delivery business Initial
City Link will, over a period of time, cease to operate on a franchised basis.
This is another important step forward in Rentokil Initial’s development. The
change will return full control of Initial City Link to the Company and should
deliver better returns for our shareholders while maintaining or improving
service to Initial City Link’s customers. Franchisees, who collectively have an
estimated annual profit of GBP5 million, will be offered a fair price for their
businesses and will be given plenty of time to plan the transition. The franchise model used by Initial City Link has been in place since the early
1990’s largely unchanged and the franchisees have played an important part in
its growth. However, thanks to recent investment in franchisor sales and
marketing and a renewed focus on personnel, better growth is being experienced
in Initial City Link’s controlled and operated branches than in those of the
franchisees.

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Marisa Cassoni stepping down from UK Royal Mail

Royal Mail announced today that Marisa Cassoni, Group Finance Director, will be stepping down from her role and leaving the company at the end of December.
Marisa Cassoni has been with the Company for over four years and has been a key member of the team which has seen the Company through its successful three-year renewal plan. Royal Mail is now moving into the next stage of its development, with the market opening to full competition from January 1, and the process to find a new Group Finance Director will now start.

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Experian takes on Royal Mail with UK movers data file

Experian is challenging Royal Mail in the movers data market by launching its own change of address file, Absolute Contacts. Royal Mail operates the market leading NCOA (National Change of Address) file, based on consumers who have moved home and have paid Royal Mail to register their new address. Absolute Contacts uses Experian’s Absolute Movers file to identify goneaways. It estimated that about half the 3.25 million Britons who move house each year do not register their new details on Royal Mail’s file and it is this gap that Experian is hoping to exploit.

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Royal Mail row brews – No taxpayer bail-out without full privatisation

Royal Mail is entering a crucial phase in its 345-year history. The next few months will see its regulator decide how much it will be able to charge for stamps until 2010, the publication of the Bain report into its future and the advent of full competition for postal services in January 2006.

Small wonder, then, that there is a sudden clamour about the company’s Pounds 4.5bn pension fund deficit. Royal Mail knows this is one of its strongest cards in arguing for lighter price controls. Allan Leighton, its chairman, also knows that the deficit could scupper his plan to make Royal Mail a partly employee-owned business.

Ministers meanwhile appear split between those who believe that there may be a case for a taxpayer bail out and those who want to resist such a bail out at all costs. The regulator should treat all this jostling for position with a heavy dose of salt.

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UK Royal Mail managers to help clear Christmas postbag

Thousands of Royal Mail managers have been asked to work in sorting and delivery offices or even drive postal vans in the busy run-up to Christmas in a bid to cut costs, it was revealed today. The organisation said it wanted managers to spend 10 days or more helping clear the expected huge festive postbag so it could cut back on the number of casual staff it employed. Senior officials worked in sorting and delivery offices last year and the practice will be encouraged again in the coming months. “This is about making Christmas a success for our customers,” said a Royal Mail spokesman. “Our managers have always been very willing to volunteer.”

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DHL sees strong growth in China despite increased competition

Deutsche Post AG’s DHL unit still expects to grow sharply in China despite increased competition from rivals such as United Parcel Service, chief executive Klaus Zumwinkel told WirtschaftsWoche. In an interview to appear in Thursday’s annual China edition, Zumwinkel said 300 Chinese cities are now part of DHL’s delivery network. ‘None of our competitors can offer such a broad range of products and services across this wide geographic area,’ Zumwinkel said in the interview. ‘DHL is the market leader in China by a wide margin. It will not be easy to catch us.’

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Hungary’s express air delivery market to double in under five years

Hungary’s market for international express air deliveries is expected to be worth about EUR 70m this year, up from EUR 62m in 2004, according to a study by Deutsche Post, which owns express delivery service DHL Express Magyarorszag. The study estimates the market for international express air deliveries will grow further to EUR 100m in 2008, and to EUR 150m in 2010, more than doubling in size over five years. According to the study, DHL Express Magyarorszag is leader on the international express air delivery market, with a 36pc share, followed by TNT Express Worldwide Hungary with 31pc, the Hungarian unit of UPS with 23pc, FedEx, which has no Hungarian unit, with 9pc, and the Hungarian post Magyar Posta with 2pc.

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