- 15 January 2016
- Transport / Logistics Services
National business mail operator UK Mail has reported good Q3 results after sacking its CEO late last year. Its new automated handled an 8% increase in demand compared to the same period last year.
Apex Insight reported that the company had suffered poor Q2 results and let go of its Chief Executive Guy Buswell late last year after an 82% drop in profits against the year before. According to the company it is now on course to meet forecast profits at the end of the financial year.
Chairman Peter Kane, who has taken over as CEO, said: “Our new automated hub operated very well throughout the peak period, and is starting to achieve good throughput levels. As a result our strong customer service levels were maintained throughout this very busy trading period.”
Mail volumes were ‘satisfactory’ but due to the mix effect, revenues had fallen in the last year. Mail volumes across the industry are set to fall but parcel volumes are set to increase considerably.
Kane went on to say, “Our new hub is now working effectively and delivering good service levels to our customers. We need to build on this base as we move forward into 2016.” The new sorting hub failed to handle large parcels when originally set up and parcels had had to be sorted by hand, causing massive delays to the system and ultimately costing Buswell his job.
This is a reversal of fortunes against the Q2 results, where Royal Mail was riding high and UK Mail was suffering. Many stockbrokers are now advising investors to sell Royal Mail shares because of underinvestment in its pensions and possible overexposure to Amazon, where UK Mail seems to have weathered the storm. In this fast moving business the giants are the ones to knock over where the little ones can recover and fight on.