Business Post Group PLC
11 July 2002
11 July 2002
BUSINESS POST GROUP PLC
CHAIRMAN'S AGM STATEMENT
'an encouraging start'
At the AGM today of Business Post Group plc, one of the UK's leading express
delivery companies, the Chairman, Peter Kane, issued the following update on
current trading and prospects:
'I am pleased to report an encouraging start to the financial year. Parcel
revenues in the three months ended 30 June 2002 were 14% ahead of the equivalent
period in the prior year. In addition to the impact of the contract with FedEx,
which commenced in September 2001, revenues also benefited from strong levels of
new business and improved levels of customer retention, more than offsetting the
effects of the turnover lost following the collapse of Tiny Computers at the end
of January 2002.
Our strategic investments, notably in our franchise network and our newer and
smaller businesses (HomeServe, International, UK Today and UK Mail), have
increased our costs, as expected. However, our cost base remains tightly
managed, service performance levels remain very high and, as a consequence, our
overall results to date are in line with plan.
UK Today, our nationwide same-day courier business, is currently operating from
19 of our depots (ahead of schedule) and is now in profit.
The results of our initial trial of UK Pallet Express, a new priority service
for pallet-based consignments, have been encouraging. In order to exploit
opportunities for the further development of this service, we have appointed a
sector specialist as Managing Director to run this as a separate business rather
than as part of Express.
Initiatives are being pursued vigorously across all areas of the Group and our
strategic investments are already yielding results. The Board continues to
believe that further progress can be expected in the current year'.
Notes for Editors:
Business Post is estimated to be the UK's joint fourth largest express delivery
company with a market share that has risen progressively to over 6% from a
national operational hub in Birmingham and from 63 depots, of which 43 are
franchised. Business Post operates primarily at the top end of the
business-to-business market, focusing mainly on overnight deliveries via its
Express network, with a customer base which exceeds 18,000 business accounts.
In addition to Express, Business Post's other businesses are HomeServe,
International, UK Today and UK Mail. HomeServe is the Group's
business-to-consumer parcels business, and provides a high quality next day
service to residential addresses. International is responsible for all
shipments coming into and leaving the UK and Eire, its business having been
boosted by a contract with FedEx, the world's largest express transportation
company, to be its UK Global Service Participant.
UK Today is the Group's nationwide same-day courier service, and UK Mail is
Business Post's business mail subsidiary. UK Mail has been granted a one-year
interim licence by the independent postal services regulator, Postcomm, for
'downstream' access to Royal Mail's local delivery network. Charges for access
to Royal Mail's network are currently in the process of being determined by
Business Post Group plc
Paul Carvell (Chief Executive) 0121 335 1111
Peter Fitzwilliam (Finance Director) 01753 706070
Bankside Consultants Limited
Charles Ponsonby 020 7444 4166
This information is provided by RNS
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