Birmingham logistics firm Business Post has reported satisfactory first quarter trading in line with the board's expectations.
The bulk mail and parcel delivery company, which has its national HQ near Brom-ford Lane, has been undergoing radical changes since chief executive Guy Buswell took over in December.
In May it reported a plunge in pretax profts from £19.6 million to £11.7 million for 2005, a year which saw two profit warnings.
Analysts forecast the company would achieve pretax profits around £11.2 million next year on sales at the £313 million mark.
In a statement prepared ahead of yesterday's AGM, chairman Peter Kane said Parcel Services, comprising the overnight business-to-business, business-toconsumer, and cross-border parcel delivery activities, continued to make steady progress following the difficulties last year.
Further progress has also been made in improving the performance of the franchise network.
The group has brought a further two loss making franchises back into corporate ownership. It said the operating losses of the transferred franchises would be absorbed within the results of Parcel Services.
Mr Kane also said UK Mail, which competes with Royal Mail in mail delivery services, continued to demonstrate strong growth.
The group handled 70 million mail items in June.
He said the company's Specialist Services division, comprising the nationwide palletised goods delivery service and the same-day Courier activities (UK Pallets and UK Today), was benefiting from the recent management restructuring initiatives and trading in line with expectations.
"The board continues to expect progress in the under-lying results in the coming year, albeit weighted to the second half as previously advised," he said.
Shares closed 4p up at 437.