Tag: UK

Royal Mail: Half year trading statement 2008-09 (UK)

Posted by | Oct 23, 2008 | |

Royal Mail Group’s operating profit more than doubled from GBP 86 million to GBP 177 million in the first half of the 2008-09 financial year compared to the same period the previous year despite a further fall in mail volumes, the company announced today.

The strong financial performance came alongside a rise in customer quality of service with the most recent figures showing the vast bulk of mail hitting or exceeding its targets.

Operating profit grew by GBP 91 million in the first half of the year compared to the same period last year. The company’s continued focus on reducing overheads as competitive and economic pressures mount played a significant role in the financial uplift with reductions in IT and other costs in the Post Office network and efficiency gains in the Royal Mail Letters business.

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Business Post grabs Amtrak contracts

Posted by | Oct 22, 2008 | |

Business Post chief executive Guy Buswell has revealed that its UK Mail division has picked up contracts following the demise of business-to-consumer parcel carrier Amtrak in the summer. “We got in touch with Amtrak’s administrators and offered to move the stranded parcels in the network,” says Buswell.
“We then agreed sight of the customer database, which gave us a jump-start on the competition. We did not buy any Amtrak assets – just its customer list.” Buswell says although UK Mail picked up business as a result of this move, other carriers, such as Parcelforce and DHL, also gained customers.
Parcelforce confirmed it has picked up a Kleeneze contract. DHL declined to comment. Meanwhile, Buswell says a name change is in the offing. “We’ve been thinking about changing the group name to UK Mail Group. We’ll probably decide on it in the new year, then go to shareholders next summer to be voted on at our AGM,” he adds.

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Firebox signs deal with Royal Mail Sameday (UK)

Posted by | Oct 22, 2008 | |

Online gadget retailer Firebox.com has signed a deal with Royal Mail’s Sameday service to offer customers within the M25 an extra delivery option in the run up to Christmas. The Sameday service offers those within the M25 delivery between 6pm and 9pm if they place an order before 2pm.
Firebox.com already offers a range of delivery options including Royal Mail’s Local Collect service, which allows customers to ask for an item to be taken directly to a Post Office branch if they know they will not be at home to receive it.

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Mandelson fuels Royal Mail speculation

Posted by | Oct 22, 2008 | |

A crucial review on the future of Royal Mail is set to be delayed, Lord Mandelson suggested on Tuesday (21st October), as he fuelled speculation that the loss-making postal operator would be privatised.
The Financial Times’ revelation earlier this week that the business secretary supported in principle the partial privatisation of Royal Mail caused a furore among unions and Labour MPs, who see public ownership of the company as a totemic manifesto commitment.
He refused to set any deadline for publishing a government-commissioned review of the postal services sector by Richard Hooper, the former telecoms regulator.
The Hooper review, which will set the context for government decisions on Royal Mail’s future, was expected to report to ministers earlier this month.
The business secretary admitted that the Hooper review’s initial findings earlier this year “paint a rather stark picture of the huge challenges facing Royal Mail”.
But he appeared sceptical in response to calls from Labour MPs to apply tougher pricing controls to Royal Mail’s rivals.
The two principal problems facing the state-owned operator – a reduction in the overall volumes of letters being sent and a huge pensions deficit – “are not down to regulation”, said Lord Mandelson.

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Direct mail industry supports Royal Mail privatisation plans (UK)

Posted by | Oct 22, 2008 | |

The UK direct mail industry has thrown its weight behind Lord Mandelson’s call for the partial privatisation of the Royal Mail, expecting it to be a positive move for the industry.
The call from the business secretary comes weeks before the government’s review of the postal service.

Gurdev Singh, Managing Director of direct mail printer Howitt, said: “Partial privatisation? I think it should be fully privatised. There needs to be drastic changes.”

He added: “At the moment, it seems that Royal Mail is fighting with one arm stuck behind its back and I agree that maintaining the status quo is imply not an option.”

Alex Walsh, Head of Postal Affairs at the DMA, echoed his thoughts saying the association “would like to see an efficient, profitable Royal Mail and it has been questioned before whether this can happen in its current structure”.

The postal regulator Postcomm earlier this year put its weight behind the partial privatisation of Royal Mail. It argued that access to private capital coupled with a stronger set of incentives were necessary to help it restructure and become more profitable.

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