Connect Group revenues down

Delivery and retail group, Connect Group has reported a revenue of £1.497bn for the year to date, down 1.3% on the same period in 2016.

Connect Group attributed the drop due to two reasons: “ the anticipated decline of newspaper and magazine sales, offsetting revenue growth in other markets”.

Divisions of Connect Group saw mixed results. Smith News had a revenue drop of 4.1% to £1.125bn (down by £52m on last year), with newspapers performing better than magazines. Connect Group said in their statement, “Media total revenue of £24.7m (2016: £23.2m) has increased by 6.1%. Planned efficiencies of £5m in the year will be fully delivered, and a robust operational performance with ongoing cost control, is contributing to a strong second half. The new regional hub at Hemel Hempstead is operational and making good progress.”

Connect Group’s Parcel Freight revenue was up by 4% to £157.3 million, largely driven by price increases.

“Despite a successful spring peak for consignment volumes,” said Connect Group, “market competition is limiting revenue growth, and the efficiency benefits from our investments in the business are coming through more slowly than anticipated. As a consequence, overall performance has followed the same trend as the first half of the year.”

Pass My Parcel is a success story in Connect Group, with an increase in parcel volume that the organisation attributed to “a combination of core growth, new client partnerships and the development of additional services”.

“Total parcels handled in June 2017 averaged 23,400 per week, up 149% on the same period last year.,” commented Connect Group. “Customer service and operational performance has remained strong throughout.”

Connect Group added: “ Good progress is being made in leveraging the Group’s capabilities in B2B final mile and early-morning delivery, attracting a growing client pipeline with a range of service propositions. We expect our contract with UK Mail to handle returns and failed household deliveries to commence in 2018, following the implementation of supporting IT.”
 
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