Guernsey Post acquires freight company

The impact of the global pandemic has seen an acceleration of growth and decline within Guernsey Post's core business.

Parcel business has increased by about 30% over the last year, with traditional letter volumes falling by over 20%.

Over the last year the company has diversified by introducing a range of new services from lottery distribution to grocery shopping delivery and HR Air is a further investment in that diversification strategy.

'The acquisition [of HR Air] marks another significant milestone in Guernsey Post's strategy to diversify its business and has been completed in the context of declining traditional letter mail volumes, a trend which has accelerated as a consequence of the global pandemic,' Guernsey Post chairman Simon Milsted said.

Demands within the postal industry are ever changing, arguably even more so currently.

'The acquisition of a fully-dedicated freight business with offices beyond our shores will offer many exciting opportunities to further strengthen and improve our services to the island's population and business community,' he said.

The completion of this deal has been done in the context of declining traditional letter mail volumes, a trend which has accelerated as a consequence of the pandemic.

Postal authorities all over the world are looking to broaden revenue streams to offset the declines in existing markets, and Guernsey Post is no exception.

Chief executive of Guernsey Post Boley Smilie said this was a unique and targeted opportunity to come by a freight company with expertise and infrastructure that is complementary to the local firm.

Over the last decade, Guernsey Post has transitioned from a letter delivery business to a parcel delivery business. The next natural step from this point is into freight.

'Both Guernsey Post and HR Air will continue to operate independently, but each will benefit from sharing knowledge and expertise which will provide a platform to materially strengthen and secure both businesses,' he said.

HR Air has 27 members of staff, with the largest team of 14 in Guernsey. 12 people work for the Jersey branch and one is based at Heathrow.

There is interest to turn HR Air's fleet of 10 vehicles to be powered by electric as Guernsey Post's environmental initiatives have been successful. But that is a long-term project for further down the line.

• The acquisition is 'for an undisclosed sum' and will have 'no impact on headcount' at either company.

• When asked for the figure, Guernsey Post said it would not share commercially sensitive information, but its annual accounts are made public every year and this year's will include the 'appropriate disclosures'.

HR Air was founded in 1987 initially as Channel Island Services and later Huelin Renouf Airfreight. In 2001 HR Air established handling services at London Heathrow Airport.

Now, the company has operations based in Guernsey, Jersey and Heathrow providing services to global freight and logistics companies, including air and sea freight, consignment collection services and distribution and delivery services.