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Business Post shares hit by a poor report
Page 6
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Business Post's profits have not improved but with restructuring the
new CEO believes it is about to turn a corner. Dominic Perry reports.
BELEAGUERED EXPRESS delivery firm Business Post has seen its share price plunge by almost 20% on the back of another disappointing trading statement.
The firm has been in difficulties since last year culminating in the resignation of chief executive Paul Carvell. His replacement. Guy Buswell. joined the firm on 5 December. He blames the disappointing figures on the previous regime but says the business is now on course to turn itself around.
The trading statement warns: "Since the interim announcement of 14 November 2(05. the board's expectations of margin improvements in the group's parcel services business, resulting from improved selling prices and lower costs, have not been achieved."
It adds that profits before restructuringcosts and tax will be atxiut Dm. A "root and branch" review of the business has taken place. bringing improvement; to service levels. But there will be a many one casts as the business restructures. Among these are £45m to help the ailing franchise network and £4.2m in exceptional items, including Elm in payments to former management.
Buswell says that the company plans to make efficiency savings in the network, particularly on the trunking operation of the parcels side of the business and the use of its owner-drivers on collection and delivery operations. He adds: "It's easy tosay,but it's hard to replicate across 58 sites.
"I don't foresee any job cuts, just smoother and smarter running." John Manners-Bellschief analyst at Transport Intelligence, says: "There's a lot of optimism that the new CEO can put things right, but it's going to take a bit of a turnaround and a lot of effort."