Business Post, the British parcels and mail operator, is to re-name to UK Mail in October in linewith its operating brands and to reflect its stronger focus on the postal market.
Chairman Peter Kane told the company’s AGM earlier this month: “The Board plans to change thename of the Group to ‘UK Mail Group plc’ in early October 2009. This will recognise the broad rangeof services the group now offers under the UK Mail brand, and reflects the livery that is now inuse on the Group’s fleet and premises.”
Business Post has been gradually moving towards the UK Mail brand since launching its privatepostal service under that name in 2002 and achieving strong growth in recent years. The parcels andcourier businesses now largely operate under the UK Mail brand as well.
The company describes its strategy as retaining parcels delivery as its core activity, whiledeveloping its mail, courier and pallets business at a faster rate and sharing the same networkwhere possible. It operates a network of more than 50 depots and a fleet of some 3,500 vehicles.
In the year ending March 31, 2009, the company increased group revenues by 7.6% to £385.7million and improved its operating profits by 14.5% to £16.6 million. Parcels (45%) and mail (43%)now generate nearly the same proportion of group revenues. The parcels division saw revenue drop by4.2% to £172.3 million but its operating profit (before exceptional items) improved by 6.5% to£16.4 million. UK Mail increased revenues by 19.8% to £164.5 million while its operating profitincreased by 16% to £11.6 million.
Kane also told shareholders that the company had made a satisfactory start to the 2009-10financial year, with trading performance in line with management expectations between April andJune. Unadjusted group revenues were 4% down on the same period last year but underlying revenues,adjusted for the number of working days, were in line with previous year levels, he said.
“Our parcels business has seen an improved trend in underlying volume and revenue performanceand, whilst still down on the previous year, this improvement is encouraging. Our Mail business, UKMail, continues to achieve satisfactory levels of growth, benefiting from the early mail volumesfrom recent contract wins,” he stated.
