City Link looks to third quarter

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City Link is on track to deliver substantial improvement in capability by October after a tough first half, according to parent group Rentokil Initial.

In its half year results, the group said City Link had stabilised its customer base and operations after a difficult Christmas for the industry and continued to invest heavily in new capability.

Sales in the first half were down 13.5 per cent at £144.5m and the carrier produced an operating loss of £17.8m.

However, the group said: “It now has a strong infrastructure with a stable hub and depot network and an exciting stream of initiatives going live in the Autumn. Delivery of these initiatives will be key to winning new business and carrying more volume through the network.

City Link has targeted growth in the four areas: healthcare, technology, media and retail/online.

It is introducing a number of customer care initiatives including My City Link, which has just been launched, and Estimated Time of Arrival (ETAs) our parcel delivery, which is due to be rolled out in the autumn.

City Link has also been developing a blueprint for its depot network introduce a consistent approach for all major processes, particularly in warehouse operations, and will deliver significant cost benefits. The group said this had progressed well in the first half and was on course for roll-out in in the third quarter.

In additional it said: “Progress has been made in reducing sub-contractors with employed drivers now accounting for 67 per cent of routes. Our target of 75 per cent will be reached before the end of Q3.

Eclipse, City Link’s new pricing and billing system, will be implemented by the end of September.

“This will increase transparency for customers and substantially reduce billing errors. City Link’s head office in Camberley was closed in Q1 and its business support centre in Newton is scheduled for closure in October with combined annualised savings of £1.2m.”

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