Business Post gains market share

[TrueBlueTerrier]

http://www.google.com/hostednews/ukpres ... DU5K1E92Fg" onclick="window.open(this.href);return false;

Mail and parcels firm Business Post has said its financial year had been better than expected, despite weaker revenues in the second half.

The Slough-based company, which picks up and sorts post ahead of delivery by Royal Mail, said difficult economic conditions hampered its parcels business while growth in mail moderated from the "very high levels" seen previously.

However, Business Post said it believed it was gaining share in its markets, with operations also benefiting from high levels of efficiency.

Its drive to reduce fixed costs has resulted in some depot closures and job losses, although a spokesman was not able to provide details.

The company, which has a network of more than 50 sites and 3,500 vehicles, said it expected profits for the year to March 31 to be "somewhat above" market expectations.

Investec Securities raised its forecast for the year just ended to £17.5 million, from £16.8 million, but given the economic backdrop said it would not be changing its 2010 or 2011 forecasts.

Analyst Robert Morton said Business Post was a well managed business "that will come through the recession well" as shares rose 8%.

Group revenues for the financial year increased 7% on the previous year.

The company said: "Revenues in the second half year were down slightly on the previous year, primarily reflecting the effects of the difficult economic environment on our parcels business.

"As expected, mail growth has moderated from the very high levels previously achieved, but the business has continued to win significant new contracts with both existing and new customers. Despite this slight reduction we believe we are outperforming the markets in which our businesses trade, and are therefore gaining market share." http://www.ukmail.biz/index.html(Business" onclick="window.open(this.href);return false; Post)

[POSTMAN]

Its drive to reduce fixed costs has resulted in some depot closures and job losses, although a spokesman was not able to provide details.

[Thorby Bislam]

They must reduce a lot of costs by doorstepping parcels instead of returning with them. Worst offenders at this.

[janitor]

They must reduce a lot of costs by doorstepping parcels instead of returning with them. Worst offenders at this.

Or but not bothering trying to deliver then claim no one was home.