Business Post Group plc

Industry:	Freight & Logistics Services
Revenues:	Under $20 Million
Employees:	Under 99

Description

Business Post, one of the UK's leading express parcel delivery companies, has been awarded a licence to operate mail services for business customers from 1 April 2002. This is the first time since the inauguration of the Royal Mail over 360 years ago that a private sector company will collect mail from a broad range of customers. It is estimated that annual turnover in the UK postal market is around £6.5 billion.

The licence has been awarded to Business Post subsidiary, UK Mail, by Postcomm, the independent regulator, for an initial one year trial period and will enable the company to collect mail from business customers in certain strategic UK locations - including Birmingham, Bristol, Edinburgh, Leeds, Leicester, Liverpool, London, Manchester, and the Thames Valley. UK Mail will sort and then transport the mail to the relevant local Royal Mail office in the UK, which will undertake the local sort and final delivery.

Full details of the service that UK Mail will offer its customers will be published closer to the launch date.

Commenting on the announcement Paul Carvell, CEO of Business Post, said: "The UK business to business market, which includes direct mail activity, has increased by 11% this year, so we see this as a fantastic opportunity and indeed the response from our customers has been very positive. We already have an existing and proven national infrastructure in terms of vehicles, sites, IT systems and expertise and we already move in excess of 25 million items per year. Initially we will only be collecting from existing customers and therefore the incremental costs are negligible. In essence, this trial licence allows us to test our business proposition at relatively little up-front cost".

Peter Carr, The Chairman of Postwatch, the customer watchdog organisation, said: "The initial licence will last for one year and is intended to allow UK Mail's customers to benefit from new postal services and for Postcomm to assess the effects while it develops its longer term licensing policy. UK Mail will be utilising Business Post's infrastructure with Consignia providing that 'last mile' delivery. The granting of this licence will have no effect on Consignia's continuing obligation to provide a universal postal service in the UK".

News Archive

DIRECT MARKETING: UK Mail offers 'promotional postcards' via a computer.(Brief article) Marketing Week; 7/30/2009 ...year - it has been soft launched into the market and is targeting small to medium businesses. Owner of UK Mail, Business Post Group chief executive Guy Buswell, says once it starts to market the new service during the autumn, it will target existing... ...more

Week Ahead 13-17 July. Investors Chronicle - magazine and web content; 7/7/2009 ...Trading statements: Hochschild Mining, JD Wetherspoon, Rio Tinto AGMs: Blacks Leisure Group, BTG, BT Group, Business Post Group, Experian, Fiberweb, ICAP, Intermediate Capital Group, J Sainsbury, London Stock Exchange Group, Northern... ...more

UK Mail seals pounds 45m post deal with Beeb.(Business) The Birmingham Post (England); 10/26/2009 ...have renewed the contract, because they are such a prestigious organisation." UK Mail is owned by the national Business Post group. It is the leading competitor for the Royal Mail, which is currently paralysed by industrial action. A fresh... ...more