Tag: UK

Royal Mail Letters MD resigns over plan

Posted by | Apr 5, 2007 | |

Ian Griffiths, managing director of Royal Mail Letters, has resigned after the board rejected his business plan.

Mr Griffiths, who had been with Royal Mail only a year, is thought to have been resisting deep cost-cutting being demanded by the Government in return for about GBP 3.9bn in state support.

Regarded as number three in the Mail hierarchy, Mr Griffiths joined from GKN Automotive on a salary close to GBP 500,000 after his predecessor resigned just 18 months into the job.

A spokesman for Royal Mail said yesterday that Adam Crozier, the group’s chief executive, would run the letters operation until a replacement was found. “We will begin looking for a new person for the role going forward,” he added.

The departure creates yet more uncertainty at the Royal Mail, which is in the process of restructuring and in pay negotiations with unions.

The search is on for a new deputy chairman, who would probably then succeed Allan Leighton when his contract expires next March.

In February, Royal Mail announced that profits collapsed 86pc in the six months to the end of September from GBP 159m to GBP 22m. The company loses GBP 4m a week on its creaking network of post offices. For every stamped letter, sent mainly by individuals, it loses about 6p.

Royal Mail has argued that the opening up of the UK’s mail market last January has caused competition to flood in more quickly than anticipated, worsening its financial position.

Analysts say the root cause of the Royal Mail’s problems are its inability to control costs and its need to finance its growing pension fund deficit.
Royal Mail has seen several recent departures, including David Flowers, head of property, who left in January.

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Christian Salvesen’s pre-close trading statement

Posted by | Apr 4, 2007 | |

Overall, the outcome for the year ended 31st March 2007 is expected to be in-line with market expectations. A third consecutive year of strong contract wins has delivered revenue growth of around 10 pct in the second half of the financial year, following the 7.5 pct reported in the first half, and all businesses have grown. Contract wins are ahead of last year’s GBP 120 million, with high contract retention rates and a continuing strong pipeline.

In the Food & Consumer sector, results will reflect the strong performance in our UK businesses and a stabilising performance in mainland Europe.

In the Transport sector, results will reflect the continuing challenges in the UK market. We have commenced a thorough review of this business which will be completed by the end of May.

We recently concluded a strategic alliance with leading Turkish freight forwarder, Ulustrans, to offer integrated transportation services between Turkey and the rest of Europe. The alliance will combine Ulustrans’ established freight forwarding services with Christian Salvesen’s extensive networks in Europe.

The programme of restructuring to improve efficiency across the Group is continuing, with particular focus on our UK and Spanish transport businesses and the European food & consumer business, and will result in restructuring costs of around GBP 4.5 million in the second half of the year just ended.

We have recently agreed some important changes with the trustees of our UK pension scheme which have reduced both the ongoing P&L cost and the balance sheet deficit without the need for additional cash contributions.

The year end debt position will be around GBP 45 million, following the successful sale and leaseback of part of our UK property portfolio in September 2006. That transaction generated GBP 47 million in cash for property with a book value of GBP 19 million. Following that transaction, the book value of our remaining properties was GBP 48 million net of related indebtedness.

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TNT Post scoops BT contract

Posted by | Apr 4, 2007 | |

TNT Post has been appointed by BT to deliver The Phone Book to 3.2 million homes across the UK as part of a three-year contract.

The move follows TNT Post’s GBP90m contract win in January to deliver BT’s addressed mail.

The new contract will see TNT Post deliver 22 of the 170 local editions of The Phone Book.

TNT Post will provide on target and on time services to ensure The Phone Book is delivered efficiently and effectively.

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MBE sets up new alternative ‘Post Office’ venture

Posted by | Apr 4, 2007 | |

Mail Boxes Etc. (UK) Ltd., (MBE) is offering sub postmasters and independent retailers an opportunity to provide alternative postal services under a new franchised concession. This could create postal services in areas where they did not exist previously and would also enable sub postmasters facing closure to stay in business and continue to serve their local communities.
MBE is an experienced franchisor with a rapidly expanding network of more than 100 high street-based centres in the UK that specialise in a wide range of postal, communication and business services for local companies and members of the public.

The new franchise proposal offers a proven business solution that mirrors the existing MBE model and could make excellent use of former post office premises. Outlets in former post offices and convenience stories will handle post and parcels and also offer a wide range of other popular services currently offered by the Post Office network including, for example, foreign currency exchange, bill payment services and money transmission.

MBE’s new developments in this area will be spearheaded the founder of Postmasternet Ltd, a company that successfully courted big business to introduce new income streams for ailing post offices. The founder said:
“We are confident that our proposition will appeal to sub postmasters, especially those who want to stay in their own area and are entrepreneurial. There are limitless opportunities, particularly in places with large numbers of small businesses and people working from home.”

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Business Post sees FY 17 pct revenue growth

Posted by | Apr 4, 2007 | |

Business Post Group PLC said it expects full-year revenue growth of around 17 pct driven by continued strong performance of UK mail, and adds that its results for the year to March 31 will be in line with its previous expectations.

In a trading update, the parcel and mail delivery firm said it expects to report 18 pct revenue growth in the second half and that good progress is being made to develop Business Post into an independent integrated postal group.

The company affirmed that it will incur an exceptional cost of about 1 mln stg in the current financial year related to exit costs from the FedEx Corp contract, which is progressing satisfactorily, but this will be offset by an exceptional gain of 1 mln stg from a recent property disposal.

Preliminary results for the year to March 31 will be announced on May 23.

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