Profit and turnover up at Tuffnells
Tuffnells Parcels Express has posted an increase in profit and turnover despite what it terms the “continuing competitive pressure” in the parcel delivery industry.
Read MoreTag: UK
Royal Mail delivers changes (UK)
Royal Mail has reskilled half its IT department and retooled its 10-year outsourcing deal with supplier CSC to get a stronger focus on software development.
Central to the postal service’s GBP 1.2bn change agenda is the rollout of a Siemens-supplied automatic mail sorting system scheduled to go live at its mail centres and delivery offices in September.
The platform is the backbone of Royal Mail’s service overhaul, which will be followed by a number of customer-focused initiatives such as minute-by-minute parcel and letter-tracking, and projects aimed at internal optimisation, such as telemetry and scheduling of staff, trucks and aircraft.
To support the demand prompted by the service overhaul and the legacy systems yet to be replaced, chief information officer Robin Dargue launched a business capability review which shed almost half the 300-strong permanent IT workforce but created about 100 new core IT roles.
Royal Mail is five years into its 10-year outsourcing contract with CSC, which was reviewed late last year in relation to “monies Royal Mail wanted to pay for extra services and some services that were no longer required”.
Earlier this year, Computing revealed Royal Mail was tendering for up to GBP 40m-worth of consultancy contracts to support its outsourcing deal with CSC. The move was triggered by “simpler consultancy framework agreements”, expected to reduce project timelines.
Read MoreRentokil chief delivers City Link blow
Rentokil Initial’s new chief executive has warned that its troublesome City Link parcel delivery business will make a “significant” loss this year and that turning round the rat-catching group is a three- to five-year job.
Alan Brown, one of the trio of ex-ICI managers appointed last month to run the business after the ousting of chief executive Doug Flynn, denied that just three weeks after joining he was “kitchen-sinking” City Link. “It would have come up whoever was running this business,” he said.
Having previously said City Link “may not trade better than break even for 2008”, Rentokil warned: “It now appears likely that the division will incur a significant full-year loss.”
Operating losses at City Link totalled GBP 16.9m in the first quarter, including GBP 10m of non-recurring costs for compensating customers and replacing management.
Analysts cut operating profit forecasts for the group from around GBP 246m to GBP 198m. Rentokil is believed to expect City Link to lose GBP 38m-GBP 40m this year. Even so, the shares rose 2½ to 97½p after Mr Brown gave what one analyst described as a “brutally honest” assessment of the problems at City Link – whose two profits warnings triggered Mr Flynn’s departure.
Mr Brown, who has ruled out breaking up Rentokil, can make more than GBP 30m if he can lift the shares to GBP 280m in three years.
He said the turnaround was “a three- to five-year programme. I’ve seen worse. Unilever China was worse than this.”
Read MorePost office launches new Fiveyear Saver
The Post Office today announces the fifth issue of its Fiveyear Saver – a no risk, fixed-term deposit bond – which guarantees returns over a five year period with the benefit of further growth potential linked to the FTSE 100-Index.
The Fiveyear Saver offers a dual investment system, which is ideal for investors made cautious by the recent stock market jitters. As a result customers who take advantage of this great offer – which is open now and closes on 11 January 2008 – will see their money managed in two ways:
– Half of their deposit earns a very competitive 7.5 per cent gross/AER per annum for the five year fixed term period
– The other half benefits from a 50 per cent return on any increase in the FTSE-100 Index over the five year period. Customers’ original deposits are guaranteed should the FTSE-100 Index fall.
Post Office director of savings and investments Richard Norman said: “Although many investors are seeking to benefit from gains in the stock market, they also want a guarantee that they won’t lose their money. This is why we are pleased to announce the launch of a new five year savings bond – with an even better rate of interest.”
“Post Office Fiveyear Saver is a secure investment which gives a guaranteed return, while still offering the growth potential of the FTSE-100 Index. There is no risk of losing your original deposit and you can invest from just GBP 500.”
Read MoreRoyal Mail Chairman moves to Canada role
Royal Mail Chairman Allan Leighton has been named President of Canada’s biggest supermarkets chain, the troubled Loblaw.
Leighton is already Deputy Chairman of Loblaw, which is locked in battle with US rival Wal-Mart for market share.
He replaces Mark Foote, who is leaving along with Chief Financial Officer William Wells.
Leighton was Chief Executive of Asda before being recruited by Loblaw in 2006.
He takes the reins at a difficult time for Loblaw, whose bottom line has suffered from the price war with Wal-Mart.
The company said the executive changes come at a ‘crucial juncture’ but added that they will bring ‘more focus and clarity in our leadership structure’.
The chain’s profit has been stagnant at best for more than two years.
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