Delivery Firm Boss Quits After Botched Move

The boss of UK Mail (LSE: UKM.L - news) has stepped down a week after the firm reported an 81% profits slump following a botched move to a new automated hub which struggled to cope with oddly-shaped parcels.

Chief executive Guy Buswell is leaving the firm "by mutual agreement" leaving chairman Peter Kane, who founded the company, to take the reins on an interim basis.

UK Mail said Mr Buswell was departing with immediate effect and a search for his successor had already begun. Shares (Berlin: DI6.BE - news) fell nearly 2%.

Mr Kane said: "The board and I would like to thank Guy for his contribution to the company over the past 10 years in his role as chief executive and wish him well for the future."

Last week, the letter and parcels delivery firm saw half-year profits tumble to £2.2m for the six months to the end of September compared to £12m in the same period a year ago.

It (Other OTC: ITGL - news) took a £10.6m hit for relocation and equipment costs as well as the write-off of software that did not fit with its needs.

The company had already warned of problems relating to its move in July from headquarters in Birmingham to a new facility at Ryton near Coventry.

In the recent update, UK Mail said there were challenges "relating to inefficiencies both in the new hub and in our transport network" and that a detailed plan was in place to address them but that it would take longer than initially anticipated.

The business, which began life as a Harrow taxi firm in 1971, said its move was "the single most important strategic development in the group's history". But it said it expected to take another 12 months to resolve full the problems at the new hub.