Tag: Business Post

Business Post Group: Pre-close period trading update

Posted by | Apr 9, 2008 | |

Business Post Group plc issued the following pre-close period trading update for the year ended 31 March 2008.

Group revenues for the financial year increased by 10.1pct on the previous year. Excluding the revenues from the FedEx contract, which terminated on 30 April 2007, underlying Group revenue increased by 16.5pct.

The company continues to see good growth in the B2B parcels business which represents around 80pct of parcels revenues. In B2C, which represents 15pct of the parcels business, the company is seeing an improving trend of performance.

Revenues in our Mail business, UK Mail, increased by some 50pct on the previous year, derived from both new contract wins and substantial further business from existing customers. The company claims to handle some 10pct of all mail collected in the UK.

Revenues in Specialist Services are now recovering with the fourth quarter showing growth.

The courier business, now trading under the UK Mail brand, has recently won a number of new same-day contracts.

The Group has maintained strong revenue growth, both during the fourth quarter and for the year as a whole. The overall performance is in line with the Board’s expectations.
Business Post Group plc will report its preliminary results for the year ended 31 March 2008 on 21 May 2008.

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Report calls for new commercial model for Royal Mail

Posted by | Mar 3, 2008 | |

An independent report has dismissed the often-cited option of ‘structural separation’ for the Royal Mail as the best way to rejuvenate the UK postal market because of the ‘potentially significant and damaging costs’. Instead it recommends a radical new commercial model with two accountable businesses operating independently with distinct targets, objectives and incentives resulting in improved customer choice, service and value for money.

The report was undertaken by David Stubbs of Europe Economics to contribute to the ongoing industry consultations and to review different business models for Royal Mail. In particular the report considers the impact of different options for Royal Mail on the promotion of commercial and customer focus in the mail sector. It was commissioned by UK Mail, one of the leading players in this market.

The new model would introduce a new business unit, Royal Mail Sales which would interface with customers, and would contain all existing retail sales, marketing and product development aspects of Royal Mail. It would operate alongside Royal Mail Network which will be responsible for the operational delivery of postal services and would sell services to Access Customers, Downstream Access providers and Royal Mail Sales on an equal and transparent basis.

The report goes on to state that this model would create “commercial equivalence” for Royal Mail in dealing with all customers which is vital to create a model for a healthy, vibrant and sustainable mail market.

The report also recommends the inclusion of new arrangements whereby competing operators were able to gain access by arrangement with Post Office Ltd to Royal Mail’s network of post offices in offering mail and parcel services to posting and receiving customers.

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Splitting of Royal Mail operations proposed (UK)

Posted by | Jan 17, 2008 | |

Royal Mail’s postal operation could be split in two under proposals put forward by the postal regulator to increase competition and reduce the burden of regulation.

Postcomm has written to all postal operators, organisations representing mail users and Postwatch, the consumer watchdog, asking them for their views on five options for regulating the industry from 2010.

Two of the options involve the principle of “wholesale equivalence”, which would split Royal Mail’s collection arm from its delivery arm by creating separate business units. That would make it easier to eliminate cross-subsidies; ensuring competitors had equal access to Royal Mail’s network, which they rely on for final delivery to homes and businesses.

At present, equal access is ensured by regulating a range of Royal Mail prices, including what it charges competitors for final delivery. This means 77 per cent of the state-owned operator’s revenues are controlled by Postcomm – a split, it says, could reduce the proportion to as little as 15 per cent.

This would be similar to the approach adopted by Ofcom, the media regulator, to reduce the regulatory burden on BT by requiring it to separate its retail operation from Openreach, the wholesale arm that handles calls for other telecom companies.

Postcomm said a split was unlikely to be effective in creating a level playing field for competitors unless the two organisations were physically separated. The businesses would need different management incentives, for example, so that the delivery arm was encouraged to offer equal service to Royal Mail and competitors.

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Business Post has 10 pct of UK mail

Posted by | Jan 17, 2008 | |

Business Post, the parcel and mail delivery group, is now handling one in 10 mail items posted in the UK after winning contracts to deal with letters and packages for large business mailers.
MBNA, the credit card company, and Norwich Union, Britain’s largest insurer, were among new customers for the group’s UK Mail postal operation, contributing to an increase in its share of the retail mail market from 7.5 per cent to 10 per cent in the last quarter of 2007.
UK Mail collects and sorts post from bulk mailers, before handing it over to Royal Mail for delivery over “the final mile” to homes and businesses around the country. Other customers include BBC TV Licensing, Carphone Warehouse, Royal Bank of Scotland and the Department for Work and Pensions.
Mail revenues during the three months to December 31 were up 60 per cent on the previous year, the group said in an interim management statement following the close of its third quarter.
The parcels arm also grew over the quarter with underlying revenues up 6 per cent. This contrasted with the experience at Rentokil Initial, which blamed falling volumes at its City Link parcel delivery service when it issued a profits warning in December.
Business Post shares have fallen from a high of 514p in June, closing on Wednesday at 250½p, up 12p.
The group will report results for the year to March 31 on May 21.

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Business Post says UK Mail Q3 revenues up 60 pct (UK)

Posted by | Jan 16, 2008 | |

Parcel carrier Business Post Group PLC said third-quarter revenues in its growing mail business lifted 60 pct over a year earlier as it announced group trading in line with expectations.

Business Post, which is challenging state-owned postal carrier Royal Mail, said its mail operation, UK Mail, won significant contracts with new customers including MBNA and Norwich Union in the period.

“With these new contracts, we now handle some 10 pct of all mail collected in the UK,” the group said in a trading statement.

Business Post said group revenues between Oct 1 and Dec 31 increased 13 pct over a year earlier. Underlying group revenues in the period lifted by 20 pct, excluding revenues from a contract with FedEx terminated in April last year.

Underlying parcels revenues in the period were up 6 pct on last year and the group said it continued to see good growth in its business-to-business parcels operations, which represent around 80 pct of parcels revenues.

In its business-to-consumer operations, which represents 15 pct of the parcels business, its period-on-period performance was consistent with the first half.

Revenues in its specialist services business for the period were in line with last year.
“We have achieved a good revenue performance during the third quarter, trading performance is in line with management expectations and overall the board expects good progress for the year,” the group said in its statement.

Business Post will report preliminary results for the year ended Mar 31, 2008, on May 21.

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