UK Mail delivers up increased revenue figure

BIRMINGHAM-based logistics group UK Mail is expecting to report a 13% increase in revenue for the first half of the year.

In a trading statement today for the half year ending September 30,  the group said overall performance in the period has been satisfactory and in line with its expectations.

“Reported group revenues for the first half are expected to show an increase of some 13% compared to the same period in the previous year. Adjusting for the increase in Royal Mail prices implemented on 2 April 2012 and there having been one less working day than in the same period in the previous year, underlying group revenues increased by some 10%,” it said.

The firm said its mail business continued to show good revenue growth both on an absolute and underlying basis driven by strong customer retention and new customer wins. This business remains well positioned in its market with a good pipeline of new business opportunities, it suggests.

“Our parcels business again showed good revenue growth, based on continued volume increases compared to the prior year. This performance reflects the benefits of recent customer wins although we continue to see an on-going mix change towards B2C,” the statement said.

But UK Mail’s courier business saw a decline in revenues.

“We expect the economic backdrop to remain challenging into 2013 and the pricing environment to stay competitive. We are continuing to plan accordingly, with tight control of our costs remaining a key focus,” the firm said.

“We have leading and differentiated positions in our markets, a highly competitive business model, and the group remains in a sound financial position, all of which gives us confidence for the future.”