Tag: Europe

Preliminary results announcement for the year to 31 march 2007

Posted by | Jun 5, 2007 | |

Financial Highlights

– Revenue up 10 pct to GBP 899m (2006: GBP 819m)
– Underlying operating profit before exceptional decreased to GBP 18.1m (2006: GBP 20.7m)
– Underlying profit before tax and exceptional down to GBP 12.5m (2006: GBP 15.4m)
– Earnings per share of 17.90p (2006: 4.46p)
– Strong free cash flow of GBP 61m, reflecting the GBP 46m from the property sale & leaseback
– Significant reduction in net debt to GBP 39m (2006: GBP 94m)
– Final dividend unchanged at 2.45p

Operational Highlights

– Sales growth momentum continues
– New business wins ahead of last year at GBP 130m
– Food and Consumer sector performed strongly
– UK businesses had an excellent year
– Transport sector had a difficult year
– Review of UK Transport complete and turnaround actions underway
– France continued strong revenue growth with new wins
– Strengthened management team

Stewart Oades, Chief Executive, said:

“Whilst the continued improvement in growing the business through new wins and increased retention rates is pleasing, there remains much to be done. The markets we operate in are still highly competitive and the performance of UK Transport is not acceptable. We have completed a thorough review of this business unit and have put in place a plan to move this business back into profit. Although this will take time, UK Transport is an essential part of our strategy to create a pan-European shared-user business.

“In the current year we expect revenue growth to continue and anticipate some benefit from the restructuring, although it will take longer before we see the full impact.”

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Influence of the regulatory framework on the pattern of competition in EU postal markets

Posted by | Jun 5, 2007 | |

The presentation gives information about the following subjects:

• Business models of entrants
– Typology introduced by Dietl & Waller 2002
• Developments in four EU countries (Germany, the Netherlands, Spain, UK)
– Regulatory framework (reserved area, network access, VAT, mandate of the regulator)
– Development of competition and business models observed in practice
• Conclusion
Discussion concerns addressed mail (excl. express)

Conclusion

• Clear interaction between regulatory framework and pattern of competition
• End-to-end competitors reach 8-12% market share in addressed mail delivery in 2006 (DE, NL,ES)
• Convergence in business models in DE, NL, ES
– Main competition from mass mail provider with elements of networked local mail provider; increasing scope of services offered
– Local mail providers and niche service providers active as well
• Pattern of competition different in UK
– Chosen access regime favours access competition over end-to-end competition (also in medium term)

Presented in the 15th Conference on Postal and Delivery Economics, 31 May-2 June 2007, Semmering, Austria.

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Royal Mail requests suspension of penalty payments

Posted by | Jun 4, 2007 | |

Royal Mail has asked the postal regulator to suspend rules that force it to compensate customers if it is unable to meet service targets because of industrial action by staff.

The request was submitted to Postcomm after the Communication Workers Union decided to ballot its members in a vote that is expected to support industrial action when the result is announced on Thursday.

Under the terms of its licence, Royal Mail must compensate business customers if it fails to meet its service targets for delivering bulk mail on time. Its prices for all users can also be pegged back in the following year if service falls below acceptable levels.

Royal Mail has told the regulator the risk of incurring hefty penalties could force it to shelve its modernisation plans to head off disruptive industrial action.

That would undermine its drive to become more efficient for the benefit of all postal users and its staff, whose job security would be threatened.

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Royal Mail union predicts national strike as bosses claim big bonuses

Posted by | Jun 4, 2007 | |

Royal Mail has awarded its chief executive hundreds of thousands of pounds in bonuses in a move that is likely to increase the prospect of an all-out strike over pay, The Times has learnt.

Adam Crozier is understood to have received a bonus of up to GBP 370,000 and further benefits, taking his total package to more than GBP 1 million.

His award comes as the Communication Workers Union is holding a strike ballot over a pay offer of 2.5 per cent or a GBP 600 lump sum. The union is increasingly confident of winning the ballot, which could trigger the first national postal strike since the summer of 1996. That action led to huge backlogs of mail around the country.

Details of Mr Crozier’s pay, which makes him the highest-paid civil servant in the country, will be revealed in Royal Mail’s accounts and financial results for the past financial year. Publication has been delayed and Royal Mail has not set a date for them to appear.

Some union sources believe that the organisation has delayed publication to avoid controversy over the pay awards, which will also go to other executives, while the ballot is running.

The result of the ballot is due on Thursday. Independent polling by the union last week predicted a vote of 65 per cent in favour of industrial action. If the union does win a “yes” vote, it could begin strike action the following week, although it could leave some time for last-ditch talks with Royal Mail

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UPS opens 100th MBE retail store in Germany

Posted by | Jun 4, 2007 | |

UPS affiliate Mail Boxes has opened its 100th store in Germany with a new outlet in the southern city of Ingolstadt.

The opening ceremony for the franchise store was attended by senior UPS and MBE officials, including MBE Europe chief Paolo Fiorelli, Stuart Mathis, President MBE
Inc., and Rob Burrows, head of UPS International Retail Services (Europe). UPS Germany holds a 20% stake in MBE Germany.

Among parcel operators in Germany, B2C specialist Hermes claims the largest network with 13,000 drop-off and collection points, DHL uses the 12,000 post offices of parent Deutsche Post, most of GLS’ 5,100 European locations are in Germany, while DPD has about 500 parcel shops.

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