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Business Direct chief executive Paul Carvell says the company is poised to move into profit in the second part of its next financial year.

Carvell says the significant growth in the ParcelXchange division, along with "massive growth" in specialist operations such as two-man delivery will mean the company will be in "full profit" for the year to January 2009.

Business Direct's second interim announcement for 2006, comparing trading with 2005, reveals a reduction in the company's  losses and a growth in turnover. Pre-tax loss reduced by 25.5% in 2006 to 2.22m, with a 30.2% improvement to £1.69m once exceptional items were considered. Turnover grew by 8.4% in 2006 compared with 2005, to £14.64m, with the ParcelXchange division growing turnover by 50% to £6.89m, but the specialist division dropped turnover by 15%, to £7.75m.

Carvell tells Motor Transport that Business Direct has exited "several hundred accounts" in its overnight parcels business, which accounts for the specialist division's drop in turnover. "We exited a lot of business that was very low margin. Historically the business was heavily into parcels, but we were not making much money, some [accounts] were actually losing money," he says. Business Direct will be concentrating on "a few key good accounts," Carvell adds.

He says the company is finding that the two divisions "are complementing and supporting each other," with opportunities to sell customers services from both areas  of the business.

Business Direct has also announced board changes, including the hire of Carvell's former Business Post colleagues Martin Wright and Martyn Wilson to the positions of finance director and managing director of the specialist division respectively.

Wright replaces Derek O'Neill, while operations director for the specialist division David Whittaker has resigned from the board.