Business Post turns profit after company-wide cost cutting

Independent integrated postal firm Business Post increased its profits and revenues during the last fiscal year thanks to a reduced cost base.

Business Post’s group revenues increased by 7.6% to £386m (US$609m) and its profits before tax were up 15.5% to £16.4m.

CEO of Business Post Guy Buswell said: “We have again made good progress in the year, despite the challenging trading environment in the second half.

“We have reacted quickly to the changing conditions, reducing our cost base further which helped us to deliver another significant improvement in financial performance.

“UK Mail achieved good revenue and profit growth, and further increased its market share.

"Parcels profits increased with reduced operating costs more than offsetting the impact of lower revenues, and here also we grew market share. Specialist Services also performed well.”

He added: “Trading in the early weeks of the new financial year has been in line with management expectations.

“Whilst there have been some tentative signs of an improvement in market conditions, it is too early to discern any sustainable trend.”

To “improve the efficiency and effectiveness” and reduce the cost base of its parcels operation, Business Post strengthened operational management and introduced new mechanisms to plan and manage operations to meet “challenging targets”.

It also reduced fixed costs by closing six sites, reducing its total sites to 52, reducing its vehicle fleet by 15% and by making a “significant number” of staff reductions.