DATE: 31st August 2006
BUSINESS DIRECT GROUP PLC Paul Carvell Appointed Chief Executive / Strategic Review / Trading Update Board Change and Strategic Review Business Direct (BDG.L), the specialist provider of logistics solutions to the field services engineer market and developer of the ParcelXchange intelligent locker distribution system, announces that Paul Carvell, non-executive Chairman since June 2006, will assume the role of Chief Executive with effect from Monday 4 September 2006. He will replace Tim Houstoun, who will remain on the Board as an executive director. A replacement Chairman will be announced in due course. From February 2001 to December 2005, Paul Carvell, 51, was Chief Executive of Business Post Group, considerably expanding its express parcels business, successfully establishing it as the first mover and market leader in business mail in competition with the Royal Mail, and taking it into the FTSE 250. Previously, he was at Christian Salvesen as the Board Director responsible for its Industrial Division, prior to which he held senior positions at a number of leading logistics and express parcels companies, including Penske, BET/Rentokil, TDG and TNT UK. Paul Carvell has commenced a strategic review, the result of which it is expected will be announced in late October. Commenting on his new role, Paul Carvell stated: "Since leaving Business Post, I have been looking for a vehicle for my ambitions to build another substantial logistics business. Having being involved with the Company since June, I firmly believe that Business Direct is the best such vehicle and I am looking forward to my new role as its Chief Executive. I believe the Company's business model is robust and am excited by the opportunity that it presents." Trading Update As previously announced, Business Direct intends to issue its Interim Announcement for the half year to 30 June 2006 on Thursday 28 September 2006. Business Direct now expects to announce a pre-tax loss of some £0.7m (2005: loss of £1.3m) on turnover of £7.8m (2005: £6.6m). EBITDA breakeven is now expected to be achieved on a monthly basis towards the end of 2006 rather than in the second half as a whole, as was expected at the time of the announcement of 13 June 2006. This slippage reflects the loss of certain low margin In Boot contracts and lower than expected trading levels in Express. The replacement of these In Boot contracts with higher margin ParcelXchange contracts is now beginning to happen. ParcelXchange growth continues to be encouraging, with NCR Corporation, a leading global technology company, recruited as a new customer as of August 2006. The pipeline of enquiries remains strong. Enquiries: Business Direct Group plc 01788-821 200 Paul Carvell (Chief Executive) Derek O'Neill (Finance Director) J M Finn & Co 020-7628 9688 Samantha Smith Geoff Nash Bankside Consultants Limited Charles Ponsonby 020-7367 8851 Photographs: Photographs of Paul Carvell are available from Ian Payne of Bankside Consultants on 020-7367 8853 / ian.payne@bankside.com. Notes for Editors: Business Direct is the leading specialist provider of logistics solutions to the field services engineer market. It provides innovative solutions to a blue-chip client base and has partnerships with global supply chain companies, such as DHL, Exel and TNT. Business Direct owns a national network of award-winning ParcelXchanges, providing a secure deposit and collection environment using sophisticated ATM technology with end-to-end track-and-trace. Over 300 ParcelXchanges, equating to over 4,000 individual lockers, are currently installed around the UK, largely at petrol stations and supermarkets.
For Further Information: Business Direct Group plc Tim Houstoun, Chief Executive T: +44 (0) 1788 821215 E: tim.houstoun@bdpx.com | For Media Enquiries: Bankside Charles Ponsonby T: +44 (0) 20 7367 8851 |
Founded in 1993 as a courier service provider, the Company evolved into a night-time product distributor to field engineers' vehicles and customer warehouses. The recognition of an opportunity in the market to develop and deliver intelligent outdoor locker systems to deal with the problems associated with timely delivery of parts to field engineers initiated the development of their intelligent locker distribution system, ParcelXchange™ in 2002.
Business Direct's ParcelXchange™ services key customers including DHL, TNT, and Exel. These customers rent the use of lockers within these ParcelXchanges™ for a fixed period, in some instances for up to two years, and pay a fixed weekly charge per locker.
