News

Business Post Group revenue rose 15% to £153m in the half-year to September 30. Pre-tax profit halved to £1.7m, down from £3.3m in 2005, with operating profit after exceptionals at £2.0m, against £3.4m before. Exceptionals, at £1.5m, were less than half the £3.2m in the first half of 2005. Plus points include service level, with delivery performance remaining "above 98%", a reduction in average linehaul cost per consignment.

In parcels, operating profit fell by 35% to £6.6m, "reflecting  the continuing costs of addressing the underperforming franchise operations". Nine were brought back in-house during the period. UK Mail grew by 157% to £37.5m, with operating profit up 136% to £2.6m.

Specialists Services, comprising UK Pallets and UK Today, grew 3.4% to £21.1m. UK Pallets grew by 8.8% to £14.8m. Operating profit would be unchanged at £0.8m but for one-off costs of £200,000, the group says. UK Today revenues were down by 7.4% to £6.3m and operating profit down by 14.3% to £0.6m. This is seen as a temporary reverse.

CEO Guy Buswell announced a new medium-term strategy "to develop Business Post into the UK's leading independent integrated postal group". The key change in the new strategy is integration. Buswell wants best practice to be shared, for example the IT systems in UK Mail. UK Pallets will "absolutely" remain part of the group, he told analysts on Tuesday. Buswell predicted "a much improved second half".