Royal Mail could face a strike ballot in the middle of the general election campaign as pay talks with the Communication Workers Union remain unresolved. The two sides have two days to reach an agreement before the CWU calls a meeting of its postal executive on Monday to consider “all available options”. The potential clash between the two sides comes after nearly two years of relative industrial peace.
Read MoreThe latest findings to emerge from independent market analyst Datamonitor’s (DTM.L) “European Express Benchmarking 2004,” research reveals that the European* 34 billion Euro express market is consolidating. The top 6 players in the industry account for over 50% of these revenues compared to 2001, when they accounted for 44% of the market value and 47% of that in 2002. “The European express industry forms one of the fastest growing segments in the transportation business. Industry consolidation has continued apace as express and parcel delivery companies merge, make acquisitions and form strategic alliances in order to gain scale and enhance their capabilities. 2005 promises new opportunities for these companies with the expansion of the EU. Europe’s fast moving express industry proves difficult to keep track of and the players must be aware of competitors’ operations, changes within the industry and opportunities,” says Emilio Pedrinaci, courier and express analyst at Datamonitor.
Read MoreTNT Mail, one of the challengers to Royal Mail, has appointed an operations director from its Dutch arm and a new head of sales from Express Dairies. Theo Hoenders will be responsible for developing TNT Mail’s ongoing operational strategy including its UK downstream access and end-to-end delivery capability, as postal operators prepare for the deregulation of the market in January 2006.
Joining the company as head of sales is Andy Goddard, who has previously worked at Royal Mail and Express Dairies.
Business Post’s letter delivery division, which competes with Royal Mail in the partially liberalised UK postal market, is set to break even during its first year of trading, ahead of expectations. UK Mail is handling the equivalent of 250 million items a year following its launch last May and has almost 1 per cent of the market, Business Post said in a trading update. The service was set up by Business Post after Postcomm, the industry regulator, gave companies the right to enter the letters delivery market in 2003. The division’s progress will enable it to break even for the year to March 31, instead of incurring a small loss as previously expected.
Read MoreThere was a heavy thud in shares of Business Post today after it admitted profits will miss most City analysts’ forecasts.
Shareholders have enjoyed four years of almost unbroken share price rises at the courier group. The stock more than quadrupled on expectations of fat profits from the company entering the postal market and breaking up the Royal Mail monopoly.
But the revelation that group pre-tax profits for the year to 31 March will come in below the GBP21.5m expected extended the stock’s recent fall to 15percent, diving 38p today to 605p.
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