Tag: UK

Christian Salvesen: Sales of vegetable processing business and interim management statement

Posted by | Aug 20, 2007 | |

Christian Salvesen today announces 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 GBP 0.7m; operating
profit included exceptional net income of GBP 0.4m and an allocation of
GBP 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.

Christian Salvesen is also releasing its first Interim Management
Statement.

Overall, for the financial year to date, the Group’s continuing business
has traded broadly in-line with our expectations, which are weighted
to the second half of the year.

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Postcomm issues consultation on proposal to reject Royal Mail's zonal pricing

Posted by | Aug 17, 2007 | |

Postcomm, the independent regulator for postal services, has issued a consultation on its proposal to reject Royal Mail’s application to charge large mailers – using products which are not part of the universal service – different prices depending on where in the UK their mail is delivered (Royal Mail calls this zonal pricing).

To reduce industry uncertainty, Postcomm announced that it was proposing to reject Royal Mail’s decision on 23 July. This consultation sets out in detail the reasons for the regulator’s decision.

The main reason why Postcomm proposes to reject Royal Mail’s application is because it could result in a pricing structure that would discriminate between different classes of postal users. Postcomm concluded that there could be pricing discrimination between:

– two of the five zones proposed by Royal Mail;
– different areas within the London zone; and
– the proposed zonal retail tariff and Royal Mail’s existing zonal access tariff for delivery of other operators’ mail over the so-called ‘final mile’.

The regulator also found that Royal Mail’s application could be introduced in a manner which would result in unreasonable changes for customers. Royal Mail did not propose a sufficient notification period for customers to prepare for the withdrawal of geographically uniform prices. The company also offered limited help to customers in managing the transition and communicating the necessary changes. Postcomm believes Royal Mail should give postal users a notice period of 12 months before geographically uniform prices are withdrawn completely.

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Lost post drives Royal Mail's compensation bill to GBP 1 m a month

Posted by | Aug 17, 2007 | |

Royal Mail is paying out more than GBP 1million a month in compensation for its failures – including settling vast numbers of claims for lost and damaged items.

More than 800 claims a day are paid out for letters and packages that have been lost. There are another 80 a day for damaged parcels and 150 per day over delayed items.

The GBP 13.6 million annual bill to settle claims represents the tip of the iceberg of Royal Mail failings because the company has become notorious for refusing to pay up over complaints.

It received complaints and compensation claims for 651,582 lost items in the 2006-07 financial year, yet paid out on only 311,005.

The Federation of Small Business claims the decline in services has reached crisis point and is damaging the economy.

Royal Mail’s GBP 13,623,473 compensation bill for 2006-07 is likely to rocket in the current financial year because of industrial action by the Communication Workers Union, according to reports to the federation.

The consumer body, Postwatch, has in the past accused Royal Mail of “cheating” customers by failing to pay proper compensation when items are stolen.

It emerged in June that Royal Mail auctions up to 75,000 items a year that have been lost in the post and not reunited with their owners.

Lost items cause more complaints than any other issue dealt with by Postwatch. Another major problem is damaged parcels.

For lost items, Royal Mail customers can claim compensation up to 100 times the cost of a first class stamp or the market value, whichever is lower. Compensation for damaged goods is awarded at the same rate, but not for glass or ceramics.

The company said that complaints and compensation claims fell in 2006-07 and were around 200,000 fewer than the year before.

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TNT Post wins Emap magazine business

Posted by | Aug 17, 2007 | |

Emap has handed its magazine postal account to TNT Post, marking the Royal Mail rival’s first win in the sector.

The 12-month contract will involve handling up to six million items across its consumer and business-to-business titles using TNT’s Premier service, which offers a two-day definite service and is then delivered to homes by Royal Mail.

Emap group circulation controller Ian Phillips said TNT’s offer on price and service would deliver significant cost benefits. “Subscription copies account for a significant proportion of our copy sales and so our postal partner is an integral part of our service,” he added. “We have also been impressed by the plans that TNT Post has in place for development and expansion of its UK services.”

TNT secured the deal following an eight-week trial. It also handles postal services for BT, Centrica, Sainsbury’s, Next, JD Williams, Lloyds TSB, HBOS and Barclays.

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Royal Mail fears GBP 350M strike fine

Posted by | Aug 16, 2007 | |

Royal Mail could face a GBP 350million fine after the recent strikes left services in turmoil.

The warning came as some workers voted for fresh action in a pay and modernization row and simmering disputes threatened to spark wildcat walkouts.

A memo to managers says the strikes “cost us dearly. Our quality of service has been ruined.

“We will miss all targets this year and could be fined up to GBP 350million unless we can convince Postcomm not to apply it”.

“Our relationship with customers is damaged and many are moving away altogether.” The Communication Workers’ Union staged two 24-hour national strikes.

It suspended more action for fresh talks. But up to 5,000 posties in South London have voted to strike on August 24 and 28.

Staff at offices including Streatham and Watford will be balloted after pay was docked. Royal Mail refused to comment.

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