The company, which lost its chief executive following two profits warnings at the end of last year, said in November that profits were likely to fall about 20% short of analysts' estimates, to about GBP14.8 million. New chief executive Guy Buswell, appointed at the beginning of December, has made a number of significant changes to the management team, increased prices and lowered costs in an effort to improve margins. After a review of the company's franchise network Mr Buswell identified that a further one-off investment of GBP1.5 million is required in order to secure its long term future. The additional costs relating to the franchise network will be around GBP4.5 million in the current financial year. Business Post said, as a consequence, it now expects profit before tax and exceptionals for the year to March 31, 2006 to be approximately GBP9 million. Exceptional items are expected to total GBP4.2 million, comprising a provision of GBP3.2 million against amounts owed by certain franchises relating to prior years and costs of GBP1.0 million for management changes. The company said that trading in its Specialist Distribution Services division remains satisfactory, while UK Mail continues to trade ahead of expectations. Buseness Post also reaffirmed in a statement that the group continues to attract significant levels of new business and that it is well placed to fund further investment, in particular for UK Mail.