News

Contract wins and an upturn in demand for business-to-business postal service has driven a 52% increase in revenues at Business Post's UK Mail service.

Business Post claimed in its full year results, released this morning, to be the current leading player in the "downstream access" market, with a market share of 11% by volume collected.

Across the group, Business Post recorded a 10% increase in group revenues to £359m and a pre-tax profit of £14.2m, up 45% on the previous year.

Chief executive Guy Buswell said: "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.

"Our focus remains to drive the recovery of our parcels business and to continue the strong growth in our mail business, where we are seeking to broaden our product portfolio to attract a significantly wider range of mail users."

The company also announced the launch of iMail, a hybrid delivery service allowing customers to electronically transmit mail items to its national network of mail centres where the mail is then printed, enveloped and posted for next day delivery.

In a statement, the company said: "We estimate the service reduces the carbon footprint of a letter by some 80%, as well as providing later deadlines for submission of mail and reduced costs."

In addition, Business Post has called for the segregation of the selling and distribution elements of Royal Mail. The company said it believed this will act as an incentive for the Royal Mail network to become more efficient and profitable.