Business Post says lower-ed consumer confidence is the reason that half-year results for its business-to-consumer (B2C) division are below expectations. Chief executive Guy Bus-well says price pressure is also causing the decline. "We've lost accounts to other carriers on price, but we deal with high-end, high-value items.
"We want to go for the right areas, with customers who are prepared to pay for our service levels." But Buswell says the comp-any's business-to-business (B2B) parcels
service is "extremely strong".
Group revenue for Business Post grew by 9% for the six months to September 2007, compared with the same period last year. Revenue for the B2B division grew by 5%, but the B2C arm was down 8% on the same period in 2006.
The firm's thriving UK Mail business, which Buswell says "underpins the future of performance", saw a 60% growth in revenue in the past six months.
But he warned that the continuing strike action by Royal Mail postal workers, and a threat of further strikes "is not good for the mail industry as a whole".
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