Tag: UK

FedEx contract loss means Business Post shares struggle

Posted by | Dec 20, 2006 | |

Business Post shares suffered yesterday when US logistics giant FedEx confirmed it was scrapping a major contract with the company, which has a hub in Birmingham.

The move follows FedEx’s pounds 120 million acquisition of ANC Holdings, a major rival to Business Post in the UK.

Business Post’s shares retreated 32 1/4 ViTp to 429 3/4 p in early trading but later recovered some lost ground to close 17 1/4 p down at 444 1/2 p, a loss of 3.7 per cent. FedEx said it intended to terminate Business Post’s contract as “Global Service Participant” in the UK, a contract that accounts for about six per cent of the company’s turnover.

Given the operational gearing of the contract, the impact on earnings is likely to be slightly higher, City analysts believe.

Broker Altium has, however, maintained its earnings estimate for the time being.

But it has cut its long-term target price for the stock from 450p to 425p, while Teather & Greenwood downgraded shares from “buy” to “sell”.

Business Post said in a Stock Exchange statement that it expected the FedEx contract, which only came into effect in September this year, to end in September 2007.

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FedEx acquires UK Express Company ANC

Posted by | Dec 19, 2006 | |

Strategic Purchase Offers Customers Broader, More Seamless Range of Services.

FedEx Corporation today announced it has acquired ANC Holdings Limited, a United Kingdom domestic express transportation company for GBP120 million. This transaction will allow FedEx Express, an operating unit of FedEx Corp., to directly serve the entire UK domestic market, providing a broader range of shipping options and enhanced service under the trusted FedEx brand.
ANC offers a comprehensive range of distribution and logistics services with an established pick-up and delivery network across the UK. Founded in 1981, ANC has annual revenues of more than GBP145 million and is known for its strong customer-service philosophy, its advanced, reliable delivery network and commitment to its employees. ANC currently operates with a network of approximately 4,500 people and a fleet of 2,200 vehicles from 80 locations.
“The addition of ANC significantly expands our service portfolio in the important UK market and underscores our continuing commitment to grow the FedEx international business,” said Michael L. Ducker, president, International, FedEx Express. “This strategic investment enhances FedEx in the global express industry and will deliver additional value to our customers, employees and shareowners.”

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FedEx acquires UK express company ANC

Posted by | Dec 18, 2006 | |

FedEx Corporation today announced it has acquired ANC Holdings Limited, a United Kingdom domestic express transportation company for GBP120 million. This transaction will allow FedEx Express, an operating unit of FedEx Corp., to directly serve the entire UK domestic market, providing a broader range of shipping options and enhanced service under the trusted FedEx brand.

ANC offers a comprehensive range of distribution and logistics services with an established pick-up and delivery network across the UK. Founded in 1981, ANC has annual revenues of more than GBP145 million and is known for its strong customer-service philosophy, its advanced, reliable delivery network and commitment to its employees. ANC currently operates with a network of approximately 4,500 people and a fleet of 2,200 vehicles from 80 locations.

UK businesses increasingly demand bundled transportation offerings in order to take advantage of global economic trends, such as the increasing percentage of high-tech, high-value manufactured goods, the growth of global trade, faster supply chains and logistics and the growth of the internet and e-commerce.

ANC management will remain in place and report directly to Elliott. As part of the transaction, ANC shareholder LDC – the private equity division of Lloyds TSB Group plc – will exit its investment.

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UK TNT expansion programme continues apace

Posted by | Dec 18, 2006 | |

TNT is continuing to drive through an expansion programme designed to strengthen its strategic infrastructure and enhance its customer service levels across the UK and Ireland.

The programme, spanning an 18-month period stretching into the first half of 2007, has already seen TNT Express Services open a National Customer Contact Centre, three new depots, a fashion clothing distribution centre and a state-of-the-art archiving facility, creating in excess of 700 new jobs.

It began when the company bucked the trend for transferring customer call centres overseas when it delivered 240 new jobs in the North East by opening a sophisticated customer help centre at Team Valley, near Gateshead.

New operational depots in the North West of England and Scotland, namely Preston, Glasgow and Liverpool are, and will be, providing an additional 300 new roles in the fast moving, time sensitive world of express delivery.

In the Midlands, TNT opened a 700,000 square feet warehouse as part of a long-term agreement with high street clothing retailer, Primark. The new and extended clothing distribution centre is expected to create up to 250 new jobs.

The second phase of the programme will see new and upgraded depots established in South Wales and Northern Ireland during 2007.

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