Tag: UK

First class war for Business Post's Guy Buswell

Posted by | May 10, 2008 | |

Tucked away in one of Guy Buswell’s depots are 12 pillar boxes. Standard Royal Mail design but painted blue. For Buswell is a private postman and the pillar boxes may one day be part of his expansion plans. For the moment, however, they confirm the conclusion of last week’s report from former Ofcom regulator Richard Hooper that the private consumer has seen no benefit from introducing competition to postal services.

Buswell is chief executive of Business Post, which collects letters from the likes of Vodafone and HSBC, sorts them and hands them to the Royal Mail for delivery. His UK Mail subsidiary handles more than 10 per cent of Britain’s post but, as yet, the public cannot give him letters for posting.

On the wall of his office, on an industrial estate outside Birmingham, above one of his 57 depots, is the very first envelope he delivered. It was from Powergen, posted on May 10 2004, and commemorates the end of the 370-year postal monopoly.

UK Mail now delivers more than 2bn letters a year. “Last week we carried 12m items in one day,” boasts Buswell, 46. It is arguably Britain’s biggest private mail service (the argument would come from TNT, the Dutch post office) and this week he will announce plans to change the quoted Business Post name to UK Mail Group.

Just 50 big customers account for 40 per cent of Britain’s post and Buswell has signed up a fair share, including Abbey, Prudential, Carphone Warehouse, Lloyds TSB and Royal Bank of Scotland. Yet sending letters is a shrinking business.

He blames Royal Mail, whose universal service last week posted its first loss in the year to March – a GBP 100m shortfall.

“We can collect mail from any customer that has 200 items per night. In the future there will be pillar boxes – or collection points,” he says. For now, however, he is working on I-mail, which will allow anyone to e-mail a letter to UK Mail for hand delivery next day.

Why not e-mail it directly to the recipient? Buswell points out that legal addresses are not electronic addresses. I-mail will be launched this summer and the consummate salesman explains: “It massively reduces the carbon footprint and reduces time. It will cost between 40p and 50p and be a next-day service.”

But its importance, he states, “is that it will be innovation in the mail industry by a competitor.”

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Royal Mail calls for end to price controls after profits collapse (UK)

Posted by | May 9, 2008 | |

An interim report from the Government-commissioned review of the deregulation of mail services in 2006 warned this week that only large businesses were benefiting from competition and that the statutory requirement on Royal Mail to offer daily deliveries to every address in the UK would cause it substantial financial problems.

Despite Mr Crozier’s warning, Postcomm, the industry regulator, pointed out that Royal Mail had already been allowed to raise the cost of stamps ahead of inflation and said it believed the current level of price controls governing the company was appropriate.

However, Royal Mail is currently most taxed about the regulation of its services to larger businesses, where it now faces significant competition from around 20 rival suppliers. While the company is free to set prices for services in this area as it sees fit, it has to offer the same price to all businesses on each of its tariffs. It is also required to offer rival services access to its delivery network, at a cost fixed in relation to the charges it makes its own customers.

Mr Crozier believes these restrictions reduce the competitiveness of the business services offered through Royal Mail Letters, undermining the company’s ability to subsidise the universal service.

The Government’s review of deregulation is due to conclude later this year but has already said the status quo should not be allowed to continue.

Nevertheless, relaxation of regulation of Royal Mail is likely to be stiffly contested by both Postcomm and the company’s commercial rivals, such as UK Post and TNT, which are facing similar market pressures. The overall size of the mail market in the UK is declining as the internet replaces both personal and business mail. More people pay bills online or by direct debit, and businesses have moved away from direct mailshot activities towards online marketing.

While Royal Mail’s rivals now collect and sort a fifth of all mail in the UK – before paying Royal Mail to deliver much of it – they insist they still need protection from the former monopoly.

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Stamps Increasing by one cent on May 12 (U.S)

Posted by | May 9, 2008 | |

The price for a one-ounce First-Class stamp will increase from 41 to 42 cents on May 12.
Prices for other mailing services, such as Standard Mail, Periodicals, Package Services (including single-piece Parcel Post), and Special Services will also change (see chart below). The average increase by class of mail is at or below the rate of inflation as measured by the Consumer Price Index.
“The Postal Service developed the Forever Stamp for consumers to ease the transition during price changes,” said Postmaster General John Potter. “We encourage Americans to buy Forever Stamps now for 41 cents, because like the name suggests, they are good forever.” The price goes up to 42 cents on May 12.
The Postal Service has sold 5 billion Forever Stamps since the launch last April and plans to have an additional 5 billion in stock to meet the expected demand before the May price change.
Consistent with a new law, prices for mailing services will be adjusted annually each May. The Postal Service plans to provide 90 days’ notice before the price changes each year.
New prices for shipping services, including Express Mail and Priority Mail, will be announced in March. Prices for all postal products and services are available at usps.com/prices.

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ABX Logistics acquires Lyons-based AIT

Posted by | May 9, 2008 | |

ABX Logistics has taken steps to boost its growth in France by acquiring AIT, a leading regional player in the Eurocargo market for traffic with Southern Europe (Italy, Spain and Portugal).

AIT is based in Genas (Lyons), employs 35 people and has an annual turnover of approx. EUR 10 million. Founded in 1996 by the Sisti family, the company will complement ABX Logistics existing LTL, groupage, customs and logistics operations in the Rhone-Alps region of France.

In this part of France, ABX Logistics already has a turnover in excess of € 25 million in the international road, air and sea sectors. Currently operating from four locations across the region (Saint-Priest, Saint-Exupéry (airport), Grenoble and Chambéry), today’s acquisition adds a fifth location, namely the AIT site in Genas.

AIT’s customers will be able to enjoy the advantages of ABX Logistics densely meshed network that extends across the whole of Europe and offers daily round trips to destinations in countries including Italy, Spain, Portugal, Germany, Switzerland, Austria, Benelux, the UK, Ireland and Scandinavia, as well as regular links with Turkey, Poland, Russia and Ukraine. ABX Logistics has more than 90 branches and hubs in Europe from which it conduct its international road groupage operations.

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Sale of vegetable processing business & interim management statement

Posted by | May 9, 2008 | |

Christian Salvesen announced that it has signed a definitive agreement for the sale of its frozen vegetable business, Christian Salvesen Foods (“the business”), comprising stock, plant, machinery, people and contracts to Pinguin Foods UK Limited, a subsidiary of Pinguin NV (“Pinguin”) for estimated total cash consideration payable at completion of GBP 17.2m. The consideration is subject to adjustment for the actual amount of stock at the date of closing. In addition, Christian Salvesen will continue to provide storage and distribution services to the business on normal commercial terms for a minimum term of sixteen months. The transaction is expected to close in mid-September following employee consultation.

The business consists of vegetable processing, packing and storage activities at three sites in Lincolnshire, located in Bourne, North Thoresby and Easton. In the year ended 31st March 2007 the business reported revenues of GBP 44.6m and operating profit of £0.7m; operating profit included exceptional net income of GBP 0.4m and an allocation of £0.8m of Group overheads. The gross assets of the business were GBP 29.5m at 31st March 2007.

The impact of the transaction on earnings is expected to be broadly neutral. The proceeds will be used for general working capital purposes.

As part of the transaction structure, Christian Salvesen will retain responsibility for the debtors and creditors at the date of closing. The land and buildings at the three sites will be retained by Christian Salvesen, with rent-free leases granted for 6 years to Pinguin. In addition, Pinguin has been granted an option to buy a 999 year lease of the Bourne site for GBP 4m within two years.

The Christian Salvesen sites at Grimsby, Hull and Lowestoft, which provide contract processing and storage services and are reported as part of the UK Logistics business, are not included in this transaction and will remain with Christian Salvesen.

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