UK Mail posts improving revenues

UK MAIL, the rival to Royal Mail, will announce a 4% increase in profits at its AGM today.

Peter Kane, chairman of the company which has a large logistics operation in Birmingham, said: “We have made a satisfactory start to the financial year, with trading performance in line with management expectations.”
 
Revenues for the first quarter increased by 5.5% compared to the same period in the previous year.  Adjusting for one less working day than in the previous year as well as the increase in Royal Mail prices implemented on 6 May 2011, underlying Group revenues increased by 4%.  
 
Mr Kane said: “Our parcels revenues showed satisfactory growth on the previous year reflecting the benefit of recent customer wins, albeit in a pricing environment that remains challenging and with a continuation of the volume mix seen in the second half of last year.
 
“Our mail business continued to grow its revenues both on an absolute and an underlying basis.  Mail remains in a good position with a strong pipeline of new business opportunities.
 
“Our courier business has continued its good revenue growth whilst our pallets business has shown resilient performance in a market that continues to be challenging.”
 
Mr Kane said: “Economic conditions remain difficult but we continue to maintain our strong focus on driving efficiency and innovation to defend and increase our market share. The Group remains in a sound financial position.”