Parcel to Germany

News about the Express Parcel Industry

Royal Mail parcel businesses produce strong revenue growth

Royal Mail Group, the UK national postal service provider, yesterday (May 8) reported "robust" financial results "in the face of many challenges" for the year ended March 30, 2008. Key points from the group's published results statement outlining developments in that period included:

  • Group external revenue of £9,388m, up 2.3%.
  • Group operating profit before exceptionals of £162m, down 30.4%.
  • Royal Mail Letters recorded a loss of £3m "due to a sharp decline in mail volumes, the continuing impact of full competition and increased levels of investment".
  • The Universal Service  loss - for the first time - of around £100m with the overall price-controlled area of Royal Mail's business making a loss of around £200m.
  • GLS and Parcelforce Worldwide saw a significant rise in revenues, "with profits remaining constant due to increased, volume-driven costs and competitive pressures".
  • Post Office Limited recorded an overall loss of £34m; "this was an improvement due to the full year impact of the Social Network Payment".
  • Landmark agreements on pay, pensions and modernisation.
  • Cash contribution by the company to pension plan of more than £800m.

Commenting on the results, Royal Mail Group chief executive Adam Crozier stated: "The £162m operating profit is a robust financial performance − ahead of expectations − in a year when we faced many difficult challenges."

Royal Mail said its results were dominated by the profit fall in the letters business where overall market volumes had declined by 3.2% year on year "in line with other major European postal markets".

However, Crozier said the last year had seen "strong" revenue growth from Parcelforce Worldwide and GLS, the group's UK and European parcels businesses, "both of which operate in tight, highly competitive markets".

TNT to operate 100 zero emission vehicles in the UK

TNT in the UK, which claims to be that country's leading business-to-business express delivery operator, this week launched "the world's largest fleet of zero emission vehicles" in a move it said would enable the company to reduce its carbon footprint by 1.3m kilos of CO² a year.

TNT's said its new 100-strong fleet of battery-powered Newton-style delivery trucks would replace diesel equivalents over the next 18 months. "The amount of CO² saved by the environmentally-friendly 7.5 tonne lorries will be enough to fill Wembley Stadium," claimed the company.

The Newton models, manufactured by Smith Electric Vehicles in Tyne and Wear, north-east England, are said to be the first pure electric vehicles in their class which can compete in performance terms with diesel equivalents and, at the same time, deliver a 100% reduction in CO² emissions and exhaust air pollutants at the point of use.

The first tranche of 50 trucks will initially operate from TNT UK locations in London, Basildon, Birmingham, Bradford, Bristol, Durham, Edinburgh, Enfield, Glasgow, Leeds, Leicester, Luton, Northampton, Oxford, Paisley, Preston and Wolverhampton. TNT said it was also piloting other Smith Electric battery-powered vans and trucks in the Netherlands, with a view to rolling them out across its wider European operations.

Peter Bakker, TNT CEO, commented: "We are living in times of great change and the launch of the fleet represents a critical component in what we are striving for - to make TNT the first zero emissions express and mail company."

Parceline invests in new UK facility

UK express parcels carrier Parceline has invested £1.29m in a new, purpose-built premises in Millennium City Park, Preston. The new 4.3 acre site comprises a 31,646 sq ft warehouse as well as office space. It is larger, and also incorporates a fully automated system making the sorting of parcels quicker and more efficient. Parceline deliberately chose a new site near to their previous premises to protect existing employees. It currently has 76 staff employed at the facility.







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