THIS IS MONEY
HSBC has become the latest major bank to give Royal Mail the sack.
UK Mail, the postal arm of parcels courier Business Post, said today it now acts for three of the five High Street banks after HSBC joined Royal Bank of Scotland in ditching Royal Mail for the sorting for delivery of its bank statements.
Lloyds TSB had already switched to UK Mail's arch-rival, the Dutch postal group TNT, but UK Mail today announced it had also picked up part of the Lloyds TSB contract.
Major customers such as the Department of Work and Pensions, the BBC, Vodafone, and Powergen helped UK Mail revenues soar from £40m to £90m in the year to the end of March, doubling profits to £6.4m.
That compares with UK Mail forecasts at its launch in 2004 that within three years it would make £10m on revenues of £150m - about 3% of the £5bn market.
Chief executive Guy Buswell said UK Mail missed the targets because VAT issues meant part of the market remained in favour of Royal Mail. Business Post's group pre-tax profits doubled to £9.8m but the dividend is pegged at 10.8p.
ANNOUNCEMENT : ALL OF ROYAL MAIL'S EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (Updated 2021)... HERE
ANNOUNCEMENT : PLEASE BE AWARE WE ARE NOT ON FACEBOOK AT ALL!
Now UK Mail picks up the post at HSBC
-
F0zziebear
- MYSTERY MAN
- Posts: 637
- Joined: 31 Jan 2007, 23:45
re: There you got the VAT issue
Gentlemen & Ladies,
As you'll see TNT & UK Mail forgot about the VAt exemption that Royal Mail enjoys with respect to banks. This means that their profits are hit by 17.5% which means even though the customer is getting a good deal, the competitors are not actually making much if anything from these big contracts.
Royal Mail have encouraged competitors to take their mail, but do not want them to deliver it themselves. Getting 13.5p for the inward processing and delivery is actually a reasonable return. So the game is not lost yet!
As you'll see TNT & UK Mail forgot about the VAt exemption that Royal Mail enjoys with respect to banks. This means that their profits are hit by 17.5% which means even though the customer is getting a good deal, the competitors are not actually making much if anything from these big contracts.
Royal Mail have encouraged competitors to take their mail, but do not want them to deliver it themselves. Getting 13.5p for the inward processing and delivery is actually a reasonable return. So the game is not lost yet!
-
TrueBlueTerrier
- FORUM ADMINISTRATOR
- Posts: 72511
- Joined: 30 Dec 2006, 10:29
- Gender: Male
- Location: On my couch
SO why are they beating us with the stick of competition and no sign of any carrots anywhere.
All post by me in Green are Admin Posts.
Any post in any other colour is my own responsibility.
If you like a news story I posted please click the link to show support Any news stories you can't post - PM me with a link
My sharing of news articles should not be interpreted as an endorsement or condemnation of any particular viewpoint or the issues presented. I share them solely for informational purposes.
Any post in any other colour is my own responsibility.
If you like a news story I posted please click the link to show support Any news stories you can't post - PM me with a link
My sharing of news articles should not be interpreted as an endorsement or condemnation of any particular viewpoint or the issues presented. I share them solely for informational purposes.
-
F0zziebear
- MYSTERY MAN
- Posts: 637
- Joined: 31 Jan 2007, 23:45
re: Because of govt strings
Couple of things:
1. The money need to do the modernisation of the processing and pension deficit comes with conditions from the Govt. They want to see £350M cost cuts (Why Griffiths resigned because the initial analysis suggested major cuts in personnel and possibly a threat to the quality of service)
2. The processing and primary sortation in DO's needs to be brought upto date to compete against competition (UK could hold this back like France, but France has strong enough unions to bring down Govts).
3. If the competition do start delivering then they will become significantly cheaper, assuming they invest in delivery capability up front. (They will after about 5 years get their delivery costs down to 7-9p) so the 13.5p they are currently charged gives them some good headroom per item.
Hope that gives some insight?
1. The money need to do the modernisation of the processing and pension deficit comes with conditions from the Govt. They want to see £350M cost cuts (Why Griffiths resigned because the initial analysis suggested major cuts in personnel and possibly a threat to the quality of service)
2. The processing and primary sortation in DO's needs to be brought upto date to compete against competition (UK could hold this back like France, but France has strong enough unions to bring down Govts).
3. If the competition do start delivering then they will become significantly cheaper, assuming they invest in delivery capability up front. (They will after about 5 years get their delivery costs down to 7-9p) so the 13.5p they are currently charged gives them some good headroom per item.
Hope that gives some insight?
-
L Tommo
- Posts: 3165
- Joined: 06 Feb 2007, 09:43
- Gender: Male
- Location: WATCHING YOU WATCHING ME!
CHEERS AGAIN FOZZIE!!
Always the bringer of news even if it aint good!!!
OUT#
DONT SHOOT THE MESSENGER JUST STRING HIM UP!!!
OUT#
DONT SHOOT THE MESSENGER JUST STRING HIM UP!!!
L TOMMO.... ILLEGITIMIS NON CARBORUNDUM........
EAST LONDON MAIL CENTER-ISHHHH
EAST LONDON MAIL CENTER-ISHHHH
-
johno47
- Posts: 495
- Joined: 10 Feb 2007, 16:45
- Location: Burslem
Its easy to get the delivery cost down if competitors are not offering a universal delivery, its not hard when you only want big inner cities is it, why dont the goverment make RM pay VAT and also say to competitors if you want to enter the mail market, you have to provide a universal delivery service, you would hear them squeal then...
UNITY IS STRENGTH..
UNITY IS STRENGTH..