Tag: UK

Fortec announces five million investment programme

Posted by | Mar 13, 2007 | |

Rugby based Fortec Pallet Distribution Network has today announced a £5 million investment programme in a new 140,000 sq foot central hub, IT systems and equipment that will accommodate the organisation’s expansion plans for at least the next five years.

– move to new Central Hub at Easter – new facility three times size of present hub – record turnover and profits in 2006

The multi-million-pound investment, unprecedented in the 10 year history of Fortec, has been approved by French parent company Geodis following Fortec’s record financial turnover and profits for the fifth year running in 2006.

Fortec, currently based on the Europark Estate near Rugby will move to a 140,000 sq. ft. building eight miles south of its existing location. The new building which is nearly three times the size of the current hub is located on a 9.25 acre site and provides excellent motorway access.

Extensive refurbishment of the new hub site at Watford Gap is currently underway and this work is scheduled to be completed by late March in readiness for the relocation of Fortec staff and facilities to the new central hub after Easter.

Rod Abrahams, Managing Director of the Fortec Pallet Distribution Network commented: “This multi-million pound investment in a new central hub, systems and facilities is without doubt a quantum leap for the business.

“The new site represents a huge step forward in the future development of Fortec and will enable the network to handle the forecast volume growth which is anticipated over the next few years.

“The facility enables Fortec to continue to focus on the quality end of the pallet distribution market – providing our licensees with the right infrastructure to send their customers goods through a safe and secure environment with the full benefits of extensive IT support.

“This is a milestone for Fortec and will help shape the future success of the company for many years to come,” he added.

The new Fortec Pallet Distribution Network Hub is an enabler through which the company can facilitate its expansion plans:
a) It will enable the network to increase from 61 to 75 licensees.
b) It will enable the network to launch new products for licensees and their customers.
c) It will enable Fortec to develop extensive ground-breaking IT enhancements.
d) It will enable Fortec to build upon its reputation as a quality provider.

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UK direct mail volumes drop 2.1% in 2006

Posted by | Mar 13, 2007 | |

The volume of direct mail sent last year declined by 2.1% to 5.03bn items, according to Royal Mail.

Expenditure also dropped 2.1% from GBP2.37bn in 2005 to GBP2.32bn in 2006. The figures measure the whole direct mail market and not just those items handled by Royal Mail.

The overall volume figure includes mail addressed to consumers and mail addressed to businesses. Consumer direct mail volume dropped 1.6% to 3.94bn items, while business direct mail dropped 3.6% to 1.09bn.

Providing more detail about the consumer direct mail market, Royal Mail identified which six market sectors that grew in volume: Education grew the most by 10.4%; followed by charity, up 9.5%; leisure and entertainment, up 3.7%; health, up 2.8%; home shopping and mail order, up 1.3%; and “other financial”, up 0.2%.

The number of items sent to 55- to 64-year-olds increased by 11.5% and the number sent to recipients in social class AB climbed 1.1%.

The volume of direct mail sent in the fourth quarter of 2006 was 1.18bn, down 4.6% on the corresponding quarter last

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PayPoint threat to UK Post Office services

Posted by | Mar 12, 2007 | |

Royal Mail, which has been haemorrhaging postal contracts to private sector competitors, faces a fresh challenge to its business with a bid from PayPoint, the payment terminal network, to take over many of the services provided by post offices.

PayPoint, which has taken over the collection of television licence fees from the Post Office, has a bigger network of outlets, which are open longer hours and could process much of the business handled by post offices.

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UK government and health sectors see significant growth in direct mail volumes

Posted by | Mar 12, 2007 | |

Government organisations sent a total 17.47 million mailings in the last quarter of 2006, up from 16.48 million in the same period in 2005, reported Royal Mail.

This strong result illustrates the importance of direct mail to the public sector for communicating important and often complex information and reflects the increase in winter campaigns providing advice on staying warm and healthy during the cold period.

Royal Mail also revealed a rise in the volume of direct mail sent to the 55 – 64 year old age group. In addition to being responsive to direct mail, this generation is also a particularly important target audience for government organisations when relaying information about pensions, benefits and health advice.

Other sectors that performed well include building societies with a year on year volume increase of 18.8 per cent to 15.92 million items. The charity sector also showed strong growth with a volume increase of 9.1 per cent to 132.27 million direct mail pieces.

Overall direct mail volumes during October to December 2006 experienced a slight fall with 958.69 million items sent compared with one billion mail pieces during the same period in 2005. This is a result of companies across all sectors improving their targeting to create even more relevant and personal offers for their customers and prospects.

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Disposal of surplus Royal Mail property agreed

Posted by | Mar 12, 2007 | |

Royal Mail announced a deal with Land Securities Trillium (LST), a Land Securities Group business, for the disposal of a portfolio of 285 surplus or partially-occupied premises. The deal, which followed a robust competitive process, is a key element in Royal Mail’s drive to increase efficiency and compete effectively in the UK postal market.

Some 108 of the properties are surplus to Royal Mail’s operations and LST will utilise its skills to refurbish these and seek new occupiers. Of the remaining 177 properties only part of the space is being used for operations and these will be leased back to Royal Mail for 15 years at a competitive rent. The properties comprise a total of 265K sq.m. in locations across the UK. This deal will have no impact on Royal Mail or Post Office® operations.

The net proceeds for the portfolio of assets and leasehold liabilities were in excess of GBP 70 million. This represents an excellent deal for Royal Mail that takes advantage of the strength of the UK real estate market to realise value whilst streamlining its operations by removing surplus space from the portfolio with a significant annual saving in costs.

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