Tag: UK

UK Royal Mail appeals against compensation ruling

Posted by | Jan 30, 2006 | |

Royal Mail is appealing against a High Court decision that it should pay up to GBP40m in compensation to business customers for missing service targets. Last Thursday, a day before the deadline to appeal, the postal operator decided to continue the legal battle pitting it and regulator Postcomm against postal customers’ representative Postwatch. Postwatch went to the courts last year after differing with Postcomm over the amount of compensation the two organisations believed was due from Royal Mail to its customers for missing its service targets in 2003-2004. The total compensation due was GBP80m, but Postcomm allowed Royal Mail to withhold around GBP40m from customers who had paid invoices late during the year. In December, High Court judge Justice Sullivan upheld Postwatch’s challenge. The judge left the amount that Royal Mail should pay to be decided by negotiation between the two sides. Postwatch’s senior director Andy Frewin said last Friday that customers were unhappy about the appeal because it would mean a further wait for compensation.

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PalletFORCE enhances quality of network service with major investment in IT

Posted by | Jan 30, 2006 | |

PalletFORCE’s commitment to continuous improvement in quality has been underlined by a major investment in a state-of-the-art IT system, providing comprehensive real-time ‘track and trace’ for all of the Network’s Depots and their customers. The installation, designed by logistics specialist Trans-aXion, registers every pallet with a unique identification, which is used to trace deliveries throughout the distribution process. A dedicated section of Trans-aXion’s web-site allows customers to chart the progress of pallets in real-time from dispatch to delivery, the latter confirmed by electronic signature capture.

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Business Post trading statement

Posted by | Jan 30, 2006 | |

Since the Interim Announcement of 14 November 2005, the Board’s expectations of margin improvements in the Group’s Parcel Services business, resulting from improved selling prices and lower costs, have not been achieved. On 5 December 2005, Guy Buswell was appointed Chief Executive. He has made a number of significant changes to the management team designed to simplify and streamline the management of the Group’s activities and provide greater focus to those areas requiring margin improvement. A strategic root and branch approach is now being adopted to the development of the business focusing on customer mix, service and cost control. As part of his assessment of the business as its new Chief Executive, Guy has concluded a review of the franchise network and identified that further one-off investment of GBP1.5m is required in order to secure its long term future. Accordingly, it is anticipated that the additional costs relating to the franchise network will be around GBP4.5m in the current financial year. Consequently, the Board now expects profit before tax and exceptional items for the year to 31 March 2006 to be approximately GBP9m.

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UK Royal Mail goes into directory enquiries

Posted by | Jan 29, 2006 | |

Royal Mail is to take on 118 118 and BT this week with the launch of a rival directory-enquiries service. The launch could lead to a price war, with Royal Mail undercutting its rivals with a 40p flat charge for up to two enquiries. The move is the latest attempt by Allan Leighton, chairman of Royal Mail, to generate new sources of income for the indebted business. The entry of Royal Mail into the Pounds 160m directory-enquiries market will be a blow for 118 118, The Number, which is reported to be working on plans to float this year. Royal Mail’s service -11 88 55 – will be run by the Post Office, a division of Royal Mail. Simon Carter, head of Post Office Home Phone, hopes to cash in on consumer dissatisfaction with current directory-enquiries services.

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