Stamp of approval for rival after snail Mail complaints

ON a day when the cost of a second class stamp went up 1p to 21p, it's worth noting that various businesses up North have been complaining that they don't get any mail until very late morning under the new Royal Mail delivery schedules.

The service has been restricted to one delivery per day to cut costs. The fact that this is having a damaging effect on business comes as no real surprise because few people enjoy the luxury of receiving their post before leaving for work in the morning.

Royal Mail's continued inadequacy is just playing into the hands of Business Post, unchanged at 490 1/2p.

Business Post's subsidiary UK Mail yesterday began its attack on Royal Mail's monopoly. Its new service enables it to take all of the big mailing customers away from Royal Mail. It is initially offering to handle the post of big mailing houses such as mobile phone companies and financial firms.

It will undercut the Royal Mail on price and offer the guarantees of delivery within two days. UK Mail is aiming for just 3% of the £5bn business mail market, which translates into £150m a year turnover, doubling its business.

Broker Numis Securities expects a slow start from Business Post in this new market, but remains positive. Its target price is 525p.

An early 50-point rally on Wall Street helped the Footsie retrieve 25 points at 4410.7. Conditions remained subdued ahead of today's crucial US employment data. Economists expect payroll numbers to rise by a modest 103,000 in March, a figure that should convince the Fed that US interest rates can remain at 1% for a while longer.

Sterling rose to $1.85, while the euro

eased to 66.4p and $1.2306 after the European Central Bank left euro rates unchanged at 2%.

Financial information group Reuters jumped 13p to 400p ahead of today's major presentation to investors and analysts. It has also sold its French commercial and legal information unit ORT to Coface, a subsidiary of Natexis Banques Populaires. Charles Stanley says buy and its target price is 480p.

Insurance giant Aviva rose 15 1/2p to 543 1/2p after Merrill Lynch upgraded to buy from neutral. Merrills says the insurance sector has fallen 10% in six weeks, making it the worst performer in Europe. It now offers 16% potential upside over the next year. The life sector looks particularly cheap.

SkyePharma advanced 5 3/4p to 64 1/2p after repeating that it is pursuing several major transactions. Earlier this year it warned that delays in signing licensing deals would send it into the red - its third warning in six months.

Supermarket chain Somerfield advanced 7 1/2p to 158 1/2p amid speculation that Icelandic retailer Baugur was attempting to add to its 3.6% stake.

Internet bank egg sizzled 6 1/2p higher to 166p on hot gossip that the Prudential (2 1/2p dearer at 450p) had at last found a buyer for its 79.3% stake.

VT Group, the former Vosper Thorneycroft defence company, gained 11p to 273p. It has won a £100m-a-year contract to provide support services to Surrey schools with an option for a further eight years. Another £50m South Wales fire training contract is also due to be signed within a month.

Online bookie Sportingbet cleaned up at the recent Cheltenham racing festival when three red-hot favourites came a cropper. The group expects to post annual operating profits of at least £19.5m, up from £14.5m a year ago and £1.5m above city forecasts. Shares galloped ahead to 85 1/2p before finishing at 81 1/2p, up 1/2p.

UKbetting closed even stevens at 71p after announcing its first step into the European gaming market. It has bought GoldBet, the European online sports betting company, for £3m.

Christian Salvesen, the logistics company, crashed to 48 1/2p before closing 8 1/2p down at 54p following a shock warning that it expects profits for the full-year to fall below market expectations.

Aim-quoted FfastFill improved 1/4p to 7 7/8p after broker KBC Peel Hunt placed 57.1m shares, or 56% of the equity, with various institutional investors at 7p per share. The £4m raised will provide further working capital and strengthen the balance sheet.