Circular Distributors (CD) managing director Nick Wells has been named chief executive. The move effectively frees him up to focus on leading sister company TNT Mail UK’s assault on the deregulated postal market. Wells is also chief executive of TNT Mail. Charles Neilson will replace Wells as CD managing director, with a remit to ensure the firm continues its aggressive growth.
Read MoreThe catalogue industry is up in arms following Royal Mail’s decision to further delay the introduction of size-based pricing until April 2006, saying it will lead to increasing costs for mail order companies. As a result of the size-based pricing scheme, first mooted two years ago, many catalogue firms have been increasing their pagination to take advantage. But Nigel Swabey, chief executive of mail order company Scotts of Stow, says: “It takes time to increase the pagination of a catalogue from 48 to 150 pages, and we have made a massive investment to achieve this. Now that the introduction of size-based pricing has been delayed a further six months, we find ourselves paying a postage rate that is desperately uncompetitive.” A Royal Mail spokeswoman says: “We understand why some companies are not happy with the situation. We want to introduce size-based pricing as soon as possible, but, ultimately, it is up to watchdog Postcomm to decide when it can be implemented, once the consultation period has ended.
Read MoreAmtrak Express Parcels is set to go on the acquisition trail after returning to profitability in 2004. Its pre-tax profit was (pounds sterling)1.9m against a loss of (pounds sterling)5.5m in 2003. Iain MacRitchie, non-executive chairman, says: “This is an excellent result which has come much earlier than we had anticipated. The performance, competitive advantages and strength of our balance sheet have now provided a strong foundation on which to accelerate and we can now actively participate in the required consolidations of the parcel sector.” The firm, which is 68% owned by 3i, achieved a 4% growth in turnover to (pounds sterling)70m and achieved a (pounds sterling)6m operating profit. Revenue rose 4% to (pounds sterling)69.7m – its highest level in four years. It also revealed it had cut costs by 25% after restructuring its operation in 2002.
Read MoreUK direct mail volumes 1993-2003 (million items) Consumer Business Total 1993 1,772 664 2,436 1994 2,015 715 2,730 1995 2,198 707 2,905 1996 2,436 737 3,173 1997 2,700 887 3588 1998 3,123 891 4,014 1999 3,283 1,062 4,345 2000 3,516 1,148 4,664 2001 3,706 1,233 4,939 2002 3,940 1,293 5,233 2003 4,240 1,198 5,438 * Source: Royal Mail
Read MoreHays Logistics new name and strategy announced
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