UK Mail hopeful of prompt HS2 payout for Birmingham depot

LOGISTICS group UK Mail has said it remains hopeful of a prompt decision from the Department for Transport on a compensation package due to the impact of HS2 on its Birmingham depot.

The depot in Wolseley Drive lies in the path of the proposed £50bn rail line and the company has been holding talks with Whitehall to try and resolve the situation.

In a pre-close statement today, UK Mail said: “We continue to make progress with securing an agreement with HS2 for the relocation of our Birmingham hub and expect confirmation by the Secretary of State for Transport to be received shortly.”

It said it hoped to update the market on the situation in time for its interim results. It has yet to say where it intends to relocate the facility.

Elsewhere, the company said it had performed well during the first half of the financial year, with trading in the second quarter so strong as to propel performance for the first six months ahead of previous expectations.

“Reported group revenues for the first half are expected to show an increase in some 7% compared to the same period in the previous year.  Adjusted for there being three extra working days in the period compared to the equivalent period last year, the underlying revenue increase was some 4%,” it said.

The Parcels business continued to deliver a strong performance, with average daily volumes for the half increasing by 25% compared to the same period last year.  This volume growth was largely driven by an increase in home deliveries related to online shopping.

This is expected to continue growing during the second half, especially in the busy fourth quarter.

Revenues in its Mail business were down slightly, largely due to mix changes, with average daily mail volumes around 2% ahead of the same period last year.  It said Mail remained well positioned in its market with a good pipeline of new business opportunities.

The Courier and Pallet businesses performed in line with expectations, with slight revenue declines on the same period in the previous year.

The group will report its interim results for the half year ended September 30, 2013 on November 20.
 

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