Tag: Europe

PalletFORCE member, Gordon Leslie, growth underlined by move

Posted by | Nov 12, 2007 | |

Scottish transport company – and Member Depot of the PalletFORCE palletised distribution network – Gordon Leslie Distribution has moved into a new site to enhance the service it can offer to customers.
The move came after an intensive period of growth at Gordon Leslie. The company has recently completed its third year of trading since returning to family ownership; during that time sales have risen from GBP 2.5m to GBP 5.5m. At the same time, long term Gordon Leslie customer and partner London City Bond – a supplier of bonded warehouse facilities to the wine trade – required an expansion of service. Goods are stored under bond and transported from London to Glasgow by Gordon Leslie, from where its distribution fleet conducts onward delivery to hotels, restraunts and trade centres throughout Scotland.
The 110,000 sq ft depot is built on 6½ acres of land at Hillington Park, Scotland’s largest park. Strategically located on the M8 corridor between Glasgow City Centre and Glasgow International, it is ideally placed for Gordon Leslie’s needs. The company has invested in significant refurbishment and security of the site to protect both its fleet and warehoused goods.

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New agreement ensures continuation of free frontline parcels service for British forces

Posted by | Nov 12, 2007 | |

A free parcel service for the families of troops serving in Afghanistan and Iraq is to be extended, it was announced today.

The free service has proved extremely popular with families of those serving overseas in the frontline since its launch in September. The current arrangement was due to expire in December but under a new deal agreed today between the Ministry of Defence and Royal Mail, it will now continue after Christmas and is expected to last as long as British forces are serving in Iraq and Afghanistan.

Lieutenant Colonel James Swift, Commanding Officer of the 2nd Battalion The Royal Welsh based in Basra, stressed how important it was for personnel serving in Iraq to receive letters and parcels from home.

Over the past few weeks, in the run-up to Christmas, around 100,000 parcels a week have been sent free of postage to around 14,000 frontline personnel, providing them with gifts, non-perishable food items and home comforts.

Under the new deal, the costs of continuing the free frontline parcel scheme will be shared jointly by Royal Mail and the BFPO. Relatives and friends can take parcels weighing up to two kilograms to any of the UK’s 14,150 Post Office branches for onward posting to troops in Afghanistan and Iraq, as well as to a Royal Navy ships in the region.

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DPWN addresses shareholders to calm rumours

Posted by | Nov 12, 2007 | |

Deutsche Post World Net’s (DPWN) senior managers have been energetically defending the strategic direction of their company, after the publication of their nine-monthly results last week which saw revenue rise by 5.3pct and EBIT (Earnings Before Interest and Tax) after exceptional items fall by 2.5pct.

In particular, the new chief financial officer, John Allan, has been thrust forward to help articulate the new ‘capital markets programme’. Entitled a “Road Map to Value” this is designed to underline DPWN’s commitment to better returns to shareholders. It also emphasises what is an important change in direction for DPWN’s corporate strategy. DPWN’s CEO Klaus Zumwinkel articulated this as “following an expansion phase to build the leading logistics company worldwide, we’re now entering a new era…… We are implementing a series of long-term measures in order to raise profitability, generate more cash, increase payouts to shareholders and improve transparency.”

For a company as acquisitive as DPWN this is an interesting statement, indicating that the strategy of global expansion is being reigned-back, although targeted acquisitions are still being made.

Underlying DPWN’s concern is disenchantment amongst institutional investors outside Germany over the performance of the company’s shares. This is leading to mutterings on stock markets about the merits of a break-up of DPWN, particularly through a buy-out from a private equity house.

From the remarks emerging from Bonn, it does appear that DPWN is feeling the capital markets breathing down its neck. For example, John Allan commented that he didn’t think a private equity bid was a big risk “but I think one can never be complacent and the best way of stopping it even being a small risk and protect the future of our company, the jobs of our employees and so on, is really going to be to carry through very aggressively the programme we have announced today, which should make our shareholders happy”.

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SMEs in danger of postal strikes (UK)

Posted by | Nov 12, 2007 | |

VARs are feeling the bite of the postal strike as the Federation of Small Businesses (FSB) warns further strikes could force small companies out of business.

The strike in October is believed to have cost the London economy alone more than GBP 300m after several thousand postal workers took part in the dispute, causing a backlog of 12 million letters and parcels in UK sorting offices.

Simon Briault, representative for the FSB, said: “It is not just about sending a few letters or parcels, it is about the whole economy. Research conducted by the FSB found that 94 per cent of SMEs use Royal Mail exclusively and 89 per cent of them use the company every day.

“SMEs do not really have an alternative to Royal Mail. Due to privatisation, alternative services have cherry picked the larger organisations, for example government bodies, and do not see SMEs as a business opportunity,” added Briault.

He continued, saying that SMEs are under severe pressure and the strike could cause businesses to close due to financial difficulties: “The FSB is trying to raise awareness of the issue and attempting to get Royal Mail to realise the position SMEs now occupy within the economy and the market. If SMEs are not receiving the cheques they need to stay buoyant, then they have to borrow money from banks and pay interest rates.”

Mike Gammie, IT services development manager at online VAR Misco, said: “Many businesses post us cheques – if we do not receive them then we cannot bank them.
“Royal Mail has not done itself any favours. Misco was looking at alternatives to Royal Mail before the strike and we are now opting for these,” added Gammie.

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UK MP's warning over business post prices

Posted by | Nov 12, 2007 | |

Proposals by Royal Mail to charge business customers higher prices for delivering their post in rural areas must be fought, an MP has warned.

Last night North Norfolk MP Norman Lamb said that the prospect of “zonal charging” for business mail – which will see rural and urban areas treated differently – represented “the start of a slippery slope”.

Royal Mail has applied to the postal regulator Postcomm for permission to charge more to business for delivering mail in rural areas to reflect the higher logistical costs.

The proposals are currently being consulted on with a final decision expected next month.

Mr Lamb said: “The implications of this are potentially very serious once we break the principle that you are treated equally wherever you live. It is a very slippery slope.

“The postal service treating all equally is a policy that we have got to fight for.

“Even if this is rejected Postcomm appear to be leaving the door open for Royal Mail to come back again. This issue should be kept in people’s minds and campaigned against.”

Postcomm has already declared it is mindful to reject Royal Mail’s application but has said it is not opposed to the principle of cost reflective pricing – where the price of postage reflects accurately how much it will cost to deliver.

A spokesman for Royal Mail refused to confirm or deny whether the company would apply again if its application is rejected saying the company would await the details of Postcomm’s decision.

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