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DX - heir apparent to Royal Mail business customers?
6 June 2007
The result of the Communication Workers Union ballot – due to be
announced at the end of the week - makes these historic times for DX.
The organisation, which was born when industrial action crippled the postal
service over thirty years ago, is the only major operator not to rely
on Royal Mail to provide the delivery and, as such, expects to add more
customers in June alone than in the last 12 months if postal workers do
go ahead with the proposed strike.
Using its own network to collect, sort and deliver over a million items
to business and residential addresses every working day, DX is forecasting
an annual turnover in excess of £170m this year. At present, this
makes it the UK’s largest next day mail provider after Royal Mail
and DX is geared up to present itself as the leading competitor to the
state-owned service. This challenge comes 18 months after the Royal Mail’s
350 year old monopoly was ended by the regulator, Postcomm. It is, however,
less than a year since the merger between DX Services and Secure
Mail Services (SMS), led by private equity company, Candover,
made it the UK’s largest, privately-owned mail company in September
2006.
Today, DX has a well-established customer base of 27,000 public and private
sector business members of all sizes, including 97 of the top 100 legal
firms and most major banks in addition to government agencies and leading
high street retailers. Each of these clients benefits from services which
are typically 30% cheaper than Royal Mail equivalents.
Meanwhile, just two months into its launch, SecureDX, an alternative
to Royal Mail Special Delivery, already has almost 1,000 business customers.
Saving up to 40% * compared to Special Delivery, SecureDX allows DX customers
to send important mail items requiring signature on delivery to any business
or residential address in mainland UK.
James Greenbury, CEO of The DX Group says: “As we do not benefit
from tax payer subsidies we have to set our cost structure in line with
more realistic market rates of pay - for example I earn less than a quarter
of Adam Crozier's substantial pay packet. This lean attitude to operations
is consistent throughout DX. This ethos has a drip-down effect which ensures
that all customers who use our services benefit from a reliable, secure
and good value postal system which costs significantly less than Royal
Mail. The next month or so should be very interesting for us and we are
waiting to see what happens with the result of the CWU ballot. Postal
strikes cause huge disruption and we are ready to help our customers minimise
the impact on their business. We will do everything we can to keep our
customers posted. ”
-Ends-
For further information please contact Niki Wheeler or Mel Diamond at
The SPA Way on 020 7403 6900.
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