Tag: Europe

Postal Business Shrinking

Posted by | Sep 10, 2006 | |

Deutsche Post AG (DPW.XE) has warned potential postal service competitors not to place too much hope in making profit in the shrinking German postal market, which reflects a global trend, weekly WirtschaftsWoche reports Sunday ahead of publication Monday.

Deutsche Post board member Hans Dieter Petram tells the magazine that classic letter-posting, excluding advertising, is expected to shrink by about 20% in 10 years, replaced by email.

The liberalization of the postal service in Germany at the end of 2007 won’t change that fact, he adds.

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Mail service in rural areas

Posted by | Sep 8, 2006 | |

The Royal Mail has made significant strides in recent years, but faces many more testing times as it gears up for the challenge from private operators entering the postal market.

However the line has to be drawn somewhere in terms of levels of service, and the apparent idea that some rural customers will be deemed as too rural to receive deliveries is a step too far.

The Royal Mail is a lifeline service for those who live in the remotest parts of the country, and to abandon these customers because of where they live is unacceptable. One has to wonder who dreamed up a proposal which would see anyone living a 15-minute round trip off the beaten track jettisoned from the delivery round.

It is akin to the local police pulling the plug on rural crime or the power companies pulling down the electricity cables. Those who choose to live in remote areas understand it will restrict their access to services, but they should still get the basic package, and mail through the letterbox should be part of that.

The Government must ensure that the Royal Mail’s desire to make itself a lean organisation is not achieved at the expense of customers in the far-flung corners of Scotland.

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DHL freezes the way we live now.

Posted by | Sep 8, 2006 | |

The NHS has no doubt made an excellent choice in awarding a 10-year, Pounds 1.6bn contract to DHL to handle its purchasing and delivery of everything from catheters to paper clips.

DHL is, of course, a fearless logistics group that delivers to Afghanistan, Iraq and North Korea. Only problem is that it sometimes refuses to venture into scarier places such as . . . east London.

Not-so-intrepid DHL Express admits it recently decided against sending its vans to Canning Town, which lies within walking distance of Canary Wharf’s gleaming towers. What, one wonders, is the current danger – kids back from summer hols or home games at nearby West Ham?

Fortunately the NHS contract has gone to a separate division – DHL Logistics. Let’s hope it can pluck up courage to bring supplies to hospitals and GP surgeries in the ‘hood.

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Carvell steps up to stop the slide

Posted by | Sep 7, 2006 | |

Paul Carvell became CEO at Business Direct Group on Monday, relinquishing the role of non-executive chairman which he has held for several weeks.

Carvell has agreed “a package designed to incentivise me to get the business back into shape”. Carvell was granted options over 3.25 million ordinary 5p shares with an exercise price of 17p, most of which are exercisable after 12 months.

AIM-listed Business Direct’s share price more than halved in late 2005 and has failed to recover, although the firm has just reached break-even on a monthly basis. Market capitalisation last week was (pounds sterling)6.03m.

Carvell tells MT he was looking at private equity opportunities. “I’ve enjoyed the private equity approach – but I am so pleased to get back and get stuck in again,” he says. And he was immediately leading from the front. On Monday, the firm’s home page featured an invitation for those interested to call him “to discuss how we can help your business”. A priority is to develop a new three-year plan; he has half a dozen additional business areas that he wants to look at, he says.

Carvell says Business Direct gets most of its revenue from courier services: technical; two-man; and same-day. These generate an annualised (pounds sterling)12m turnover and that can expand greatly says Carvell, who notes that he took Business Post’s UKToday to a highly profitable, (pounds sterling)15m turnover from a standing start.

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Carvell 'excited' to be Business Direct CEO

Posted by | Sep 7, 2006 | |

Paul Carvell, the former chief executive of Business Post Group, has returned to active service as chief executive of distribution company Business Direct.

Carvell, who quit Business Post in December 2005 following a marked downturn in its fortunes, says he is “excited” by his new role and has already launched a strategic review of his new company’s activities; this is due to be completed in October.

The former boss of Business Post is back at the heart of the road transport industry following his resignation last December. Chris Tindall reports.

He was appointed non-executive chairman of Business Direct, which specialises in specialist secure distribution, in June, and replaced outgoing CEO Tim Houston on 4 September.

Carvell explains: “Since leaving Business Post I’ve been looking for a vehicle for my ambitions to build another substantial logistics business. I firmly believe that Business Direct is the best such vehicle. I believe the company’s business model is robust and am excited by the opportunity that it presents.”

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