Tag: Business Post

Since the Interim Announcement of 14 November 2005, the Board’s expectations of margin improvements in the Group’s Parcel Services business, resulting from improved selling prices and lower costs, have not been achieved. On 5 December 2005, Guy Buswell was appointed Chief Executive. He has made a number of significant changes to the management team designed to simplify and streamline the management of the Group’s activities and provide greater focus to those areas requiring margin improvement. A strategic root and branch approach is now being adopted to the development of the business focusing on customer mix, service and cost control. As part of his assessment of the business as its new Chief Executive, Guy has concluded a review of the franchise network and identified that further one-off investment of GBP1.5m is required in order to secure its long term future. Accordingly, it is anticipated that the additional costs relating to the franchise network will be around GBP4.5m in the current financial year. Consequently, the Board now expects profit before tax and exceptional items for the year to 31 March 2006 to be approximately GBP9m.

Shares in Business Post fell 14 per cent yesterday after the mail delivery group issued its fourth profit warning within 12 months after failing to improve margins at its core business. The UK’s fourth-largest mail operator said full-year pre-tax profit would be about Pounds 9m after margins at itsparcel services business – which accounts for 70 per cent of turnover – had failed to pick up. Guy Buswell, the new chief executive, said the company had lost “quite a few customers” over the past 12 months through lack of service and a sales force motivated to sell only to bigger customers.