8th Jun 2005 10:00
Business Post Group PLC08 June 2005 8 June 2005 BUSINESS POST GROUP PLC CHIEF EXECUTIVE PREDICTS ROYAL MAIL WILL HAVE 80% MARKET SHARE Paul Carvell, Chief Executive of Business Post Group plc, has predicted that,following liberalisation of the postal market, Royal Mail will retain aprofitable 80% share of the UK market. Mr Carvell said that the 20% which the Royal Mail would lose would fall into twocategories. Some 15% would probably be shared by four competitors which wouldprovide a nationwide service, and a further 5% would go to city centrespecialist deliverers. Speaking today at The Logistics Event conference on the subject of "Competingfor the Post", he said that the UK domestic mail market was worth £5.8 billionper year, while the international market was worth a further £0.8 billion. SinceBusiness Post had moved its first letter in May 2004, the company had now movedmore than one hundred million letters. "The Royal Mail has had three competitors since 2001 and it now retains a 98%market share. However, as Business Post, and others, rise to the challenge ofcollecting, sorting and delivering mail, this percentage will fall," he said. "We are already providing an excellent service for our large corporatecustomers. We are moving into the Small and Medium Sized business market andsoon we will be into the consumer market. Business Post is currently consideringa wide range of options for how it will implement its service to consumers, butwe have a pretty clear idea of what this will look like." He concluded, "I think the consumer postal market will continue to grow, despitesome substitution by emails. There is a £1 billion market opportunity out therefor companies like ours and so the market will change. There will be, however,one constant. Postmen are here to stay." For further information please contact: Tracy Lloyd-Watts / Loic Echaubard Bill Wallis / Nicole StephensBeattie Communications Business Post020 7053 6000 0121 335 1190 Notes to Editors Business Post Group Business Post Group operates through a network of nearly 140 locations acrossthe UK. Of these approximately 30% are franchised and half are partners in theUK Pallets network. The Group and its associates employ over 5,000 people. Afleet of more than 3,000 vehicles is responsible for the movement of over150,000 consignments every working day. Express is the Group's core UK business-to-business parcel service accountingfor 56% of Group turnover with an estimated 8% market share. International accounts for 12% of group turnover and is responsible for allshipments coming into and leaving the UK and Ireland. A high proportion of itsactivity derives from Business Post's agreement with FedEx. UK Mail is the first company to offer an alternative postal delivery service in370 years of postal history. Following extensive negotiations with Royal Mailover downstream access to their delivery network, an agreement was reached inFebruary 2004 and the service began in May 2004. HomeServe, the Group's UK business-to-consumer parcel service, provides highquality time-definite service to residential addresses. It accounts for 12% ofGroup sales and last financial year increased its turnover by 54%. UK Today is the Group's same day nationwide courier and logistics service. UKToday increased its turnover by 25% in the last financial year BXTech is a technical courier specialising in field service logistics and isactive in the computer, medical and utilities sectors. It was acquired as BXT inFebruary 2003. Together UK Today and BXTech make up the Group's Courierdivision. UK Pallets provides a nationwide express palletised goods delivery servicethrough a partnership with 70 independent haulage businesses throughout the UK.It was acquired in July 2003 and is responsible for 10% of Group turnover.www.businesspost.biz This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
UKM.L