British delivery company City Link said that it has now merged Target Express which it acquiredlast autumn for GBP 212 million into a single-branded, integrated network offering B2B and B2C
parcel and postal services. The operator generated strong organic and overall growth both in Q1,2007 and in 2006.City Link said that as of May 1, 2007, its brand will appear on the full fleet of 4,350commercial vehicles across the UK, and it is offering an enhanced product range to all existing andnew customers. For the first time, it will target the bulk post market following integration ofTarget Express’ mail service.
The core City Link services will be next-day parcel and pallet delivery with differentdelivery time options, same-day delivery for urgent items, European road express delivery throughthe NetExpress Europe alliance, and international air express.
Former Target Express customers will be offered a greater level of security, track and tracefunctionality for the first time, and additional products such as nominated time delivery includingbefore 7.30am. A unified, regionally-based sales team has been set up to offer the wider productrange, the company announced.
City Link said that later this year there will be additional investment in new and existingmechanical handling equipment, depot technology and cage tracking. The fleet will also be enhancedwith the purchase of 140 hard-sided trailers and 7,000 new wheeled cages.
Michael Cooke, City Link managing director, commented: “We have set out to combine the verybest of City Link and Target Express, and our move to a single brand and customer proposition,achieved ahead of schedule, demonstrates the commitment of our people to create the UK’s finestservice company. Our aim is to become the most competitive, efficient and customer focused deliverybusiness in the UK.”
Meanwhile, parent group Rentokil Initial announced today (May 2) that City Link, includingTarget Express, increased revenues in the first quarter ending March 31, 2007, by 177% to GBP 94.5million, with organic growth of 9.8% and combined volume growth of 13.1% that was ahead ofestimated market growth of 3%. Operating profit rose by 63% to GBP 9.3 million despite lower yieldper consignment.
In 2006, City Link, including Target Express, increased its full-year revenue by 70% to GBP213.3 million, increased volumes by 10.7% to 35.7 million consignments and improved its operatingprofit by 19.6% to GBP 34.8 million. The operator achieved organic revenue growth of 9.7%, andclaimed volume and revenue growth above market rates.
