UK Mail delivers in line with expectations

BIRMINGHAM based mail delivery group UK Mail has said first half trading has continued to be in line with management expectations.

The group is one of the UK’s leading independent parcels, mail and logistics services companies and bills itself as the main alternative to Royal Mail for business mail.

In a pre-close trading update for the half year ended September 30, 2010, the company said: “The first half of the year has been satisfactory, with trading performance continuing to be in line with management expectations.”
 
Group revenues showed an increase of 1% compared to the same period a year ago.
 
The Parcels business continued its revenue growth in the first six months and the group said it expected the final three months of the calendar year to be its busiest.

It added the launch of its Retail Logistics service within this division was making good progress.
 
Mail revenues increased slightly compared to the same period last year.  As previously indicated, the group said it expected revenue growth in its Mail business to be weighted towards the second half of the financial year as the impact of new customer wins and growth in Packets, together with additional volumes from some existing customers, more than offset the overall decline in transactional volumes in the UK mail market.
 
Its Courier business also continued to grow its revenues, while the group said its Pallets business had shown a resilient performance in a market that remained challenging.
 
UK Mail Group will publish its interim results on November 18.