Tag: UK

Grayling to handle Postcomm PR

The Postal Services Commission (Postcomm) has awarded a three-year public affairs and PR contract to Grayling Political Strategy as it prepares to open up the pounds 5bn letters market to full-blown competition.

Grayling will support the postal regulator’s in-house PR team in communicating the reforms to businesses, consumers and politicians. According to the tender document, it will be expected to provide ‘hands-on support in the face of a hostile media storm’.

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Guernsey Post postal licence change rethink

Guernsey Post and its watchdog will consult again on proposed changes to its operating licence. The Office of Utility Regulation now suggests scrapping and replacing condition 18, which contains the clauses that specify the conditions for price regulation. ‘The OUR’s aim with this proposed modification is to clarify further the services intended to be regulated under condition 18 of Guernsey Post’s licence,’ said director-general John Curran. The OUR’s initial attempt to regulate prices of postal services through its licence – as distinct to regulation law and postal law – was appealed by the company in October 2004. This is ongoing. Behind the appeal was Guernsey Post’s concern that it would lead to regulation of prices in competitive markets, where it believes it is entitled to a level playing field. However, the OUR argues that the October modification was ‘a tidying-up exercise’ and that there would be no increase in the watchdog’s powers.

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Hopes for pallet growth; but fear over rates.

Far from reaching their peak, pallet networks still have much traffic to go after. The sector needs to talk up inherent efficiencies more strongly, TPN chairman argues. Pallet networks “have a very large market still to attack”, says Richard Eldred, chairman and co-founder of The Pallet Network. A study this year had shown that the market share of all networks was 4.8% and revenues total GBP528m in 2004; but forecast an increase to 13.5% market share and revenues of GBP1.65bn in 2008. He told the UK Express Delivery conference organised by Triangle in Birmingham last week that reports of complaints from some large distribution contractors that customers are becoming too demanding on timed deliveries is “great news for networks”. Network members have a great story to tell about how the networks have taken the cost out of pallet distribution and been able to pass on much of that to customers; they should be even more pro-active in telling that story, he said.

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UK DX Services plc – trading update

The leading independent provider of early morning, next day mail services. DX delivers over one million items each day and operates a UK-wide, end-to-end
network including collection, sortation and final mile delivery. The directors expect turnover in the year to 30 June 2005 to have been similar to last year (GBP131.9m in 2004). Operating profit before amortisation of goodwill and exceptional demerger costs is also expected to have been similar to last year (GBP32.7m in 2004), except for the effect of the additional costs of being an independent and listed company of up to GBP2m. Net debt is estimated at GBP60m at 30 June 2005. This is significantly less than market expectations and results in a lower than expected interest charge for the year.

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