Red Star predicts first profit since its buyout
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• Red Star Parcels is expecting to break into profit next year for the first time since its management bought the business from British Rail two years ago.
Finance director Steve Dennison says he hopes to be able to float the company on the stock exchange in the next two to three years.
At the time of the buyout the company was losing up to .£10m a year, but Dennison is predicting profits of Lim for the period to 31 December 1998.
"We're adding £4-5m a year to sales," he says. "Unlike with BR, we are pro-actively selling." Turnover is predicted to top £24m next year it is likely to be a shade under £20m this year.
Franchising has been a key route to expansion. There are currently 20 franchisees and next year the company hopes to add at least 20 more. It runs a fleet of 120 vehicles and has access to 15,000 train movements a day.
Red Star's main clients are Parcelforce, Royal Mail, electrical retailer Comet and a number of hi-tech companies such as IBM, AT&T and NCR.