LONDON (Alliance News) - Connect Group PLC Wednesday announced the launch of 'Pass My Parcel', a new click-and-collect delivery service with online retailer Amazon as a partner.
In a statement, Connect Group - formerly Sminths News PLC - said the service, developed by its news and media division, has the potential to be part of the division's diversification strategy.
Pass My Parcel will distribute twice daily to participating independent retail outlets, seven days a week, 364 days a year. The service will allow customers ordering online by 1945 to collect their parcels from 0630 the next morning. If parcels are ordered by 1145, customers will be able to collect them from 1600 the same day.
The intention is to give customers more control over when and where they choose to pick up their items.
Pass My Parcel will utilise Smiths News' information systems, invoicing and communication facilities and provide access to over 500 independent retail outlets being serviced by 12 Smiths News' depots. Connect Group was formerly known as Smiths News but in April changed its name in order to reflect its diversified distribution business.
"This is a very exciting opportunity for Connect Group, and is a key element of our broader diversification strategy. Working with Amazon, our team has brought to market an efficient and flexible service that no other business can offer. Over the coming year, we plan to develop and expand the service, to thousands more retailers, recognising the scale of opportunity as a key strategic development for our news distribution business," Connect Group Chief Executive Mark Cashmore said in a statement.
Amazon.co.uk Ltd Managing Director Christopher North said: "This is our fastest pickup service yet; we know that Prime customers love fast delivery and the convenience to pick up their order at a time and place that suits them best. This new service brings together both of those great benefits."
Connect also reported its results for the year ended August 31, showing an increase in pretax profit to GBP43.1 million from GBP38.9 million, due to the performance of the group's news and media division and its education and care division, offset by underperformance in books.
The increase in pretax profit came despite of a marginal slip in revenue to GBP1.808.5 billion from a restated GBP1.810.8 billion, which included GBP3.9 million in non-recurring items. Higher cost of sales and administrative expenses were offset by a fall in distribution costs, resulting in operating profit increasing to GBP48.6 million from GBP45.6 million.
"The group has delivered another solid trading performance. Our news and media division had an excellent year supported by additional sales momentum from the World Cup and our education and care division delivered a good peak trading performance," Chief Executive Mark Cashmore said in a statement.
"Whilst the books division has had a disappointing year, management actions have now stabilised performance. We are particularly excited about today's announcement of the launch of Pass My Parcel with Amazon, which leverages the core skills of the business and supports our diversification strategy."
Connect also said it is looking to refresh its board, as Dennis Millard, Anthony Cann and John Worby, who were appointed as non-executive directors on demerging from WH Smith PLC in August 2006, will have served as directors for nine years at the end of August 2015. The group said it has already appointed an external search agency to assist in the process, with the aim of appointing a successor to Millard, its chairman, as a first step and appointing other new non-executive directors by no later than the annual general meeting in early 2016.
Connect increased its full-year dividend 4.3% to 9.7 pence from 9.3p.
The group's shares were Wednesday quoted up 18% at 163.00p.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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