News

Business Post Group has posted healthy financial results - despite a fall in turnover in its parcels division. Operating profit was £14.5m for the 12 months to March 2008 - an increase of 39.4% from £10.4m the previous year. Pre-tax profit shot up 44.9% to £14.2m from £9.8m in the corresponding year. Turnover rose 10% to £359m in 2008, up from £326m in 2007.

Chief executive Guy Buswell says: "We have made good progress during the period, which has resulted in a much-improved financial performance.  Our strategy of creating an integrated offering is well developed and starting to deliver benefits across the group." However, revenue at the group's parcels division dropped 7.2% to £180m from £194m, while operating profit edged up a disappointing 2% to £15.4m from £15.1m, which the firm says reflected a "more competitive market".

Last December, Business Post appointed a netwok operations director to restructure the parcels manage-ment team. Buswell adds: "Our focus remains to drive the recovery of our parcels business and to continue the strong growth in our mail business where we plan to broaden our portfolio to attract a significantly wider range of mail users."

Operating profit at its UK Mail division was £10m in the 12 months to March - up 56.3% from £6.4m last year, with turnover leaping 52% to £137m from £90.3m. The firm says its mail arm recorded "significant contract wins" during the year. Overall revenue in its specialist services division, which comprises  UK Pallets and its mail courier business, remained unchanged year-on-year at £41.5m. Buswell says: "The start of the new financial year has been encouraging with trading during the early weeks in line with expectations."