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8 Apr 2009 07:00
8 April 2009
Business Post Group plc
Pre-Close Trading Update
Business Post Group plc today issues the following pre-close trading update for the year ended 31 March 2009.
Group revenues for the financial year increased by some 7% on the previous year.
Revenues in the second half year were down slightly on the previous year, primarily reflecting the effects of the difficult economic environment on our Parcels business. As expected, Mail growth has moderated from the very high levels previously achieved, but the business has continued to win significant new contracts with both existing and new customers.
Despite this slight reduction we believe we are outperforming the markets in which our businesses trade, and are therefore gaining market share. Our operations continue to achieve high levels of efficiency which have enabled us to reduce our operating costs, more than offsetting the profit impact of the lower revenues.
As a result we expect that profit before tax (before exceptional items) for the year ended 31 March 2009 will be somewhat above market expectations.
We have carried out a review of our operations in order to reduce the fixed cost base across our network. This review will result in exceptional costs for the year of some £1.2m relating to depot closures, vehicle fleet and staff reductions, but will generate significant savings going forward.
The Group's balance sheet remains very strong with a net cash balance.
Business Post Group plc will report its preliminary results for the year ended 31 March 2009 on 21 May 2009.
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Enquiries: |
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Business Post Group plc |
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Guy Buswell, Chief Executive Steven Glew, Finance Director |
0121 335 1111 01753 706070 |
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Hogarth Partnership |
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John Olsen Ian Payne |
020 7357 9477 |
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