Express suffers fast fa
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Problems at its parcel division have hit revenues at Business Post, but
there's good news elsewhere in the group. Lucia Cockcroft reports.
A SHARP FALL in volume at Business Post's Express parcels division has led to a 25% drop in pre-tax profits for the six months to 30 September 2005.
It is blaming tough trading conditions in the parcels sector for the decline: pre-tax profits before exceptional items fell to £6.2m, from £8.6m during the same six months in 2004. This was despite a 21% increase in turnover, to £133m.
The Express parcels division offers overnight business-to-business delivery. It is part of the Parcel Services operation and generates a full 50% of Business Post's revenue. But by September volumes were 3.5% down on those last year, so revenue rose only 2.9% to £67.5m. Businesspo,
Worldwide Express
The chief executive of Business Post, Paul Carvell, is not optimistic that volumes will increase next year. He says:"Sadly this is a reflection of a lack of consumer confidence and a general downturn in business spending. We have to take a view that this trend will continue and throw a pessimistic view on the forecast for the rest of the year."
Business Post's Specialist Distribution Services,which includes the UK Pallets business, did better with revenue up almost 17% at £20.4m.
Revenue at UK Mail, which operates in the business-to-con sumer and business-to-business markets,rose 600% to £14.6m.
The restructured International division managed a 12% increase in revenue, to £15 .2m.