Tag: UK

Business Post caught in parcels downturn

Posted by | Nov 14, 2005 | |

Parcels group Business Post sent its shares into tailspin today by delivering its second profits warning in three months. Investors reeled from the news that Business Post was no longer handling as many parcels a day as it was last year and its annual profits were now likely to fall 20% short of market hopes.
Volumes at its Express unit, which makes overnight deliveries between businesses, were up 8% at the start of the year but have worsened since then to be 3.5% below 2004 levels in September. This matters because 40% of the costs of operating its network of around 60 depots are fixed, reducing the freedom of Business Post to act when volumes fall.

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Business Post Group plc – interim results and current trading

Posted by | Nov 14, 2005 | |

Business Post announces results for the half year ended 30 September 2005 in line with the trading statement of 21 September 2005, which highlighted a below-expectations performance by Express and the franchise network, together with successful trading in the rest of the Group. Financial highlights include: turnover increased by 21% to GBP133.0m, profit before tax and exceptional item totalled GBP6.2m (2004: GBP8.6m), impacted by the difficult economic conditions and reported pre-tax profit was GBP3.0m (2004: GBP8.6m). Parcel Services (Express, International and HomeServe) increased revenue by 8.6% to GBP97.7m, representing 73% of the Group total, but experienced mixed fortunes in a market that was among the most challenging in the Group’s recent history. Specialist Distribution Services (UK Pallets and Courier) made strong progress, increasing revenue by nearly 17% to GBP20.4m and UK Mail made excellent progress, increasing revenue almost six-fold, to GBP14.6m, representing 11% (2004: 2%) of the Group total.

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Government to grant Royal Mail’s wish list

Posted by | Nov 13, 2005 | |

The Government is set to inject around pounds 2bn to help plug the Royal Mail’s gaping pension-fund deficit. Bosses at the state-owned postal service are understood to be confident that the Government has listened to their concerns about the pounds 4bn black hole in the final-salary pension scheme and that it will help out with the cash injection. In addition, although no final decision has been made, the Government is expected to back Royal Mail chairman Allan Leighton’s controversial plan to hand over 20 per cent of the business to its staff, and to green- light an investment programme of nearly pounds 2bn. The Royal Mail wants the money to improve sorting systems. It is also likely that Postcomm will soften its stance on price controls.

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Wells draws up TNT battle plan

Posted by | Nov 11, 2005 | |

With just under two months to go until the postal market is open to full competition, TNT Mail UK chief executive Nick Wells reveals how the TPG-owned group is planning to break Royal Mail’s 350-year grip on the delivery business.

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Royal Mail plans PIP blitz to all UK homes

Posted by | Nov 11, 2005 | |

Royal Mail is planning one of the largest marketing campaigns in its 350-year history, thought to be worth nearly GBP15m, for the launch of its controversial pricing in proportion (PIP) scheme. The push, to target both businesses and consumers, will include a PIP ‘template’, allowing customers to work out exactly how much they will pay before going to the Post Office. Every UK household – about 26 million – is to be targeted. The campaign will feature a major direct marketing blitz. A Royal Mail spokesman says: “We will be using a mix of media to promote what is possibly the biggest change in the postal service’s history. We have already started communicating with more than 200,000 businesses, so that they can prepare for the new pricing structure.”

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