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Business Post Group plc the UKs leading independent express delivery company

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Business Post Group plc. Preliminary Results Presentation. 21 May 2009. 2. Key points. Further year of strategic and operational progress ... – PowerPoint PPT presentation

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Title: Business Post Group plc the UKs leading independent express delivery company


1
Business Post Group plc Preliminary Results
Presentation 21 May 2009
2
Key points
  • Further year of strategic and operational
    progress
  • Good growth in Mail market leadership further
    enhanced
  • Parcels profits improved, and outperformed the
    market
  • Specialist Services significantly ahead
  • Group operating margins up from 4.0 to 4.6,
    despite challenging H2
  • Group performance transformed over last 3 years
    integrated national network now delivering real
    benefits

Before exceptional items
3
Steven Glew Group Finance Director Financial
Results
4
Summarised Income Statement
4
5
Divisional Summary
Year to 31 March
5
6
Half Year Revenues
6
7
Parcels
Year to 31 March
7
8
Mail
Year to 31 March
8
9
Specialist Services
Year to 31 March
9
10
Taxation
Year to 31 March
10
SG/sp/221
11
Dividend Cover
Year to 31 March
11
SG/sp/221
12
Cash Flow
12
SG/sp/221
13
Capital Expenditure
13
SG/sp/221
14
Balance Sheet
At 31 March
14
SG/sp/221
15
Guy Buswell Group Chief Executive Business
Review
16
3 Years of Progress
  • Change programmes have delivered substantial
    progress
  • over the past 3 years

16
17
Mail Performance
  • Continued good growth in revenues and profit,
    albeit at moderated levels as expected
  • Strong flow of new business wins, volume gains
    and renewals
  • 70 of mail is regular/statutory so insulated
    from economic downturn
  • More discretionary mail segments seeing some
    volume reduction
  • Service levels further improved
  • Market share increased to 17 by volume of mail
    collected in the UK

18
Opportunities in Mail
  • Continued volume growth through expansion of
    existing relationships and new contract wins
  • Innovation key to expanding available market
  • iMail
  • Disguised Mail
  • Returned Mail
  • Further new products services planned

19
Mail Market



Sources Royal Mail published data
estimates UK Mail estimates
20
Available Market (Value) by Service
Non-business Mail 19
First Class 13
Second Class 27
Packets 31
Third Class 10
Source Royal Mail published data estimates /
UK Mail estimates
21
Postal Services Bill 3 key elements
  • Transfer of Royal Mail pension deficit to the
    State
  • Positive step towards stabilising Royal Mail
  • Separation of Post Office network from letters
    and
  • parcels business
  • Sensible recognition of differing roles and
    business models
  • Sale of minority stake in Royal Mail to third
    party
  • Stronger and more efficient Royal Mail is good
    for the industry overall
  • 3. Regulation to move from PostCom to OfCom
  • Welcome move OfCom has record of successfully
    handling deregulation

22
Parcels Performance
  • Good revenue growth in H1 H2 reflected
    increasingly difficult economic environment
  • Significant decline in overall market -
    indicates market share gains
  • Operating profit and margin increased, driven by
    high levels of efficiency margins at 9.5 for
    the year
  • Important major new contracts secured B2C and
    B2B
  • Overall efficiency and service levels to
    customers improved

23
Parcels Cost Reduction
  • Responded quickly to the market downturn
  • Focus on constructive measures to reduce fixed
    costs
  • 6 sites closed, reducing the total to 52
  • Improved utilisation has enabled 15 reduction in
    vehicle fleet
  • Significant staff reductions

24
Parcels Margin Performance
Year to 31 March
2007
2008
2009
25
Opportunities in Parcels
  • Significant new contracts to be implemented in
    Q2/H2
  • Renewed focus on premium B2C market
  • Scope to further increase market share,
    especially in SME market
  • Further efficiencies to come, through partial
    automation

26
Specialist Services
  • Courier
  • Strong growth in revenues and profit
  • Driven by development of nationwide integrated
    network
  • High service levels supporting new national
    courier contracts
  • Pallets
  • Further solid growth in profitability
  • Continued to win market share
  • Attractive/flexible option for hauliers in a
    downturn

27
Strategy
  • UKs leading independent integrated postal group
  • Focus moves from necessary change programmes
  • to driving profitable top-line growth
  • Mail Expand available market through product
    innovation
  • Parcels Grow market share through new
    competitive position
  • Courier Leverage national network to win
    further large contracts
  • Pallets Continued strengthening of network to
    build market share
  • Whilst maintaining overall drive for efficiency,
  • constantly seeking further cost reductions

28
Current Trading Outlook
  • Business model and strong balance sheet proving
    resilient in current challenging conditions
  • Benefits of recent new contracts to be felt
    progressively in H2
  • Start of new financial year in line with
    management expectations
  • Tentative signs of an improvement in market
    conditions, but too early to discern any
    sustainable trend
  • We are confident of the Groups ability to
    continue to outperform the markets in which we
    operate
  • Long term growth potential
  • across all business areas

29
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