Tag: Business Post

Business Post expects FedEX contract changes

Posted by | Dec 18, 2006 | |

Business Post Group PLC has warned that following the acquisition of ANC Holdings by FedEx Corp, it has has been informed of FedEx’s intention to terminate its contract as ‘Global Service Participant’ in the UK.

Business Post said the nature and timing of the exit of the contract is yet to be agreed, but ‘we expect the contract to be terminated by September 2007.’

The FedEx contract currently represents 6 pct of group revenues, it added.

The company went on to say that it does not expect any impact on profits for this financial year, adding that ‘once the nature and timing of the contract exit has been agreed, we will give guidance on the profit impact for future years.’

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British CEP market consolidates further

Posted by | Dec 1, 2006 | |

The fragmented British courier, express and parcels market looks set for a new wave of consolidation following this week’s GBP 210 million acquisition of independent parcels carrier Target Express by Rentokil Initial, parent holding of leading player City Link. The deal makes City Link into a top competitor to DHL, TNT and UPS in the domestic next-day parcels market.

Growth in Europe’s second-largest express and parcels market has slowed over the last year, especially in the domestic sector. The market is forecast to grow only moderately at about 3% over the next few years. At the same time, the traditionally fierce price-based competition in Britain and higher operating costs, especially fuel costs, have combined to put pressure on profit margins. These factors have hit smaller, domestically-focused companies in particular, and opened up new opportunities for mergers and acquisitions.

There have already been several important transactions in the UK in recent years. UPS improved its domestic market position with the acquisition of Lynx Express last year, while Amtrak Express Parcels broadened its portfolio through the takeover of Nightspeed. DHL had earlier jumped to become market leader with the acquisition of the Securicor Omega Express business, while GeoPost had acquired Parceline and Interlink Express.

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Business Post Group plc – Interim Results 2006/07

Posted by | Nov 14, 2006 | |

Highlights
Group revenue up 15% to £153m (2005: £133m)

UK Mail revenue up 157% to £37m (2005: £15m)

Operating profit (before exceptional items) £3.5m (2005: £6.6m)*

Profit before tax (before exceptional items) £3.2m (2005: £6.5m)*

Exceptional charges of £1.5m (2005: £3.2m)

Profit before tax £1.7m (2005: £3.3m)*

Interim dividend 6.4p per share (2005: 6.4p)

*as restated for prior year adjustments.
Guy Buswell, Chief Executive said:

“Good progress has been made in addressing the operational issues in the Parcel Services business which undermined our performance last year, and UK Mail has continued to grow strongly, reinforcing its position as the leading competitor to Royal Mail.

We have recently undertaken a review to establish the medium term strategic agenda for the Group, which is to develop Business Post into the UK’s leading independent integrated postal group. We are creating a robust platform from which this can be achieved.

Current trade remains in line with our expectations and the Board expects a much improved second half.”

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Pre-close trading update

Posted by | Oct 5, 2006 | |

Business Post Group plc, the leading parcel and mail delivery group, provides the following pre-close update for the six months to 30 September 2006.
Trading in the first half of the current financial year has been satisfactory with Group revenue up 15% to GBP153m. Progress continues to be made with the performance improvement initiatives previously announced.

Revenues in Parcel Services, (comprising the Group’s overnight business-to-business, business-to-consumer, and cross-border parcel delivery activities) were down 3.4% to GBP94m. We continue to make progress with our initiatives to strengthen this business, with a focus on further improving our customer service and improving our operational efficiency. Parcels volumes are now showing growth and our customer service levels we believe remain amongst the highest in our industry.

We have made further progress in improving the performance of the franchise network. Eight franchises have been brought back into corporate ownership in the period, bringing the total transferred since the beginning of the calendar year to 14. Overall these operations make a significant trading loss. Our plan is to reduce the run-rate of these losses such that they are eliminated by the start of the new financial year. However, as previously advised, these losses will impact our operating profit by some GBP3m for the current financial year, weighted toward the first half. In addition we have incurred some GBP1m of costs on the transfer of franchisees to corporate ownership. These costs will be included within the operating profit.

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