Business Post Group PLC
17 January 2003
BUSINESS POST GROUP PLC
Update on Postcomm determination
Business Post announces that it has been advised by the Postal Services
Commission ('Postcomm'), the independent postal industry regulator, that the
publication of its determination of UK Mail's access to Royal Mail's delivery
network for public consultation will be later than originally anticipated. At
this stage it is difficult to predict when the determination process will be
finalised. Business Post will make a further announcement once Postcomm's
determination has been published.
As reported in the announcement of interim results on 12 November 2002, the
establishment and operating costs of UK Mail, Business Post's business mail
subsidiary, are being kept to a minimum and are being expensed to the profit and
loss account. The long-term attractions of this market, estimated at over £5
billion per annum, remain considerable.
The Board continues to believe that the current year will be one of progress,
notwithstanding its being one of investment in the Group's newer and smaller
businesses and the franchise network. The Board remains very confident about
the Group's long-term potential.
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
Notes for Editors
Business Post's subsidiary, UK Mail, has been awarded a licence by Postcomm for
business mail services. Under its licence, UK Mail intends to collect mail from
business customers, sort it and transport it to the relevant Royal Mail delivery
office for local sorting and final delivery.
Following a period of negotiation with Royal Mail Group, UK Mail was unable to
reach agreement over charges for access to Royal Mail's delivery network and, in
April 2002, asked Postcomm for a determination on the terms of access. On 8
November 2002, UK Mail announced that it had received Postcomm's confidential
draft determination. Postcomm intends to publish its proposals for public
consultation once it has fully considered the submissions on the draft
determination by UK Mail and Royal Mail.
This information is provided by RNS
The company news service from the London Stock Exchange