Business Post’s second half sales were down slightly on the previous year, primarily reflecting the effects of the difficult economic environment on the parcels business.
As a result, sales for the year to 31st March were seven per cent up, the group said in its pre-close trading update and the group expects – pre-tax profit to be ahead of market expectations.
“We have carried out a review of our operations 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.”
Mail growth slipped from the high levels previously achieved, but the business continued to win significant new contracts with both existing and new customers, the group said.
“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.”