Secured Mail strikes post deal with City Link

POSTAL operator Secured Mail has struck a deal with express parcel delivery firm City Link to handle smaller items of mail on its behalf.

The outsourcing deal has a “substantial” value to the Warrington-based group which will deal with between 50 and 100 million items as part of the agreement.

Last year Secured Mail, which has sales of £68m, handled around 650 million items.

Secured Mail, backed by private equity outfit Next Wave Partners which took a 40% stake in 2011, focuses on smaller items of post such as letters and packets.

It manages the post of corporate clients through the sorting and distribution process and uses Royal Mail for final deliveries. Its customers include Amazon, American Express, Anglia Water and Centrica.

Founder and chief executive Mark Bigley said: “City Link is a competitor but what we’re saying is rather than compete we should collaborate.”

He added: “We have an aspirational sales target of £100m and deals like this, as well as winning more customers, will help us achieve it.

“We continue to innovate the service and product range and that brings new customers. The increase in home shopping is a real growth area and having Amazon as a customer is great for us.”