Tag: Business Post

Business Post announces results for the half year ended 30 September 2005 in line with the trading statement of 21 September 2005, which highlighted a below-expectations performance by Express and the franchise network, together with successful trading in the rest of the Group. Financial highlights include: turnover increased by 21% to GBP133.0m, profit before tax and exceptional item totalled GBP6.2m (2004: GBP8.6m), impacted by the difficult economic conditions and reported pre-tax profit was GBP3.0m (2004: GBP8.6m). Parcel Services (Express, International and HomeServe) increased revenue by 8.6% to GBP97.7m, representing 73% of the Group total, but experienced mixed fortunes in a market that was among the most challenging in the Group’s recent history. Specialist Distribution Services (UK Pallets and Courier) made strong progress, increasing revenue by nearly 17% to GBP20.4m and UK Mail made excellent progress, increasing revenue almost six-fold, to GBP14.6m, representing 11% (2004: 2%) of the Group total.

Fears that trading at Business Post Group may have deteriorated since last month’s shock profits warning pulled the FTSE 250 mail operator down a further 5 per cent. At the time of last month’s alert, the company said the rate of decline in volumes in its UK parcel delivery service had slowed from August’s trough. However, Altium Securities remains cautious, suggesting that continued gloom from the retail and technology sectors indicates that the key Christmas period may be poor. Further, Andrew Nussey, analyst, believes there is a risk that selective price rises in delivery charges will not stick as business customers become more cost conscious.