UK Mail delivers steady growth

LOGISTICS group UK Mail says it has made a “satisfactory” start to the financial year, with trading performance for the first quarter in line with expectations.

Announcing an interim management statement ahead of today’s AGM, the group, which has a large distribution depot in Birmingham, reported revenues for the first quarter increased by some 13% compared to the same period in the previous year.

“Our parcels business showed good volume growth on the previous year and, although we continue to see a mix change towards B2C, revenues grew solidly,” it said.

“Our mail business showed good revenue growth both on an absolute and an underlying basis. Mail remains well positioned in its market with a healthy pipeline of new business opportunities.

“Our courier business saw a decline in revenues, as expected, whilst our pallets business has again achieved revenue growth.

“We remain in a sound financial position.”

The group said it expects the economic backdrop to remain tough in 2012 and the pricing environment to stay competitive.

“We are planning accordingly, with tight control of our costs continuing to be a key focus,” it said.

“We have leading and differentiated positions in our markets, a highly competitive business model, and a strong balance sheet which gives us strategic flexibility.

“We are therefore confident that we will come through this period of significant change in our industry as one of the strongest players in the markets in which we operate.”