Tag: UK Mail

Business Post close period trading update

Business Post proposes to announce its preliminary results for the year ended 31 March 2005 on Tuesday 17 May 2005 and today issued a trading update reporting expected increased turnover in Express, a reduction in turnover growth for Pallets and excellent progress for UK Mail. Business Post expects its turnover for the year ended 31 March 2005 to be in line with expectations but pre-tax profit (before goodwill amortisation) to be slightly below consensus market expectations of approximately GBP21.5m. The Board’s overall outlook for the year ending 31 March 2006 remains unchanged.

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Business Post Sorting Centres

UK Mail are just about to open their first, of a planned 5, mail sorting centres in Swindon. This apparently represents a £2 million investment, the other 4 sorting centres will be in London, Leicester, Leeds and Glasgow. I believe they have chosen Pitney Bowes mail sortation equipment. This means that they will shortly start to collect unsorted (domestic) mail for sortation and distribution to 120 Inward Mail centres.

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UK Mail contract with The Royal Bank of Scotland Group for upstream mail services

Business Post announces that, following a tender process, its business unit UK Mail has contracted to provide upstream mail services to The Royal Bank of Scotland Group, one of the UK’s largest mailers. Collections will commence today. Upstream mail services comprise the collection and national distribution of mail (with associated management information and IT) for next day delivery to Royal Mail, for local sorting and final delivery.

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MAILING ISSUES: Time to deliver

With the postal services market opening up, mailers could soon be able to select the day of the week in which direct mail and door-drops arrive. Despite being heralded as the most accountable medium, direct mail – and door-drops – do not offer any physical evidence of being delivered in the form of written confirmation by the postal service. One thing you can be sure about with advertising is that an ad has appeared. With TV ads, simply watching during the right slot will provide confirmation, even before the contractor sends out a written report. Radio and press ads can also be physically monitored – and research companies exist that do just that. Even door-to-door can now be monitored using a service like StepCheck. But once the mailing house has raised a docket saying items were handed over to Royal Mail, mailers just have to wait and see if the enquiries or orders start to come in. It is a surprising gap. The sheer volume of items makes it impossible to validate that every single item has been distributed. But the absence of proof reflects another gap in direct mail’s measurability: guaranteed delivery dates.

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UK Royal Mail’s market share being eroded

Royal Mail’s monopoly of the postal market is starting to be eroded, as rival mail companies poach the group’s biggest business customers. TNT Mail, owned by the Dutch post office, said yesterday it had won contracts to handle mail for several high-profile corporate clients, including Sky. The company said that it was handling nearly 1m items of post every week. Business Post, owned by UK Mail, has been operating in the UK since early last year and boasts clients such as Powergen, while DHL Global Mail, part of Deutsche Post, will launch its own UK business at the end of this month. Andy Barrett, head of marketing at DHL Global Mail UK, said the group had signed contracts with two large business customers. Although private sector competition to Royal Mail is growing rapidly, the state-owned group is expected to retain its market dominance for many years.

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