UK Mail expecting to post decent set of results

MIDLANDS logistics firm UK Mail Group is predicting a rise in revenues.

In a pre-close trading update for the financial year ended March 31 the Birmingham-based firm said overall performance for the fourth quarter and the full year is expected to be in line with our previous expectations. 
 
Reported group revenues for the quarter are expected to show an increase of some 6% compared to the same period in the previous year, giving total reported revenue growth for the financial year of some 7%. 

UK Mail said its parcels business continues to deliver a good performance, with volumes for the quarter increasing by around 15% compared to the same period last year. 

This volume growth was again partly driven by an increase in home deliveries related to online shopping, with a continuation of the mix change towards B2C, as previously seen.
 
The firm’s mail business achieved revenue growth due to a further good increase in mail volumes. This growth continues to be driven by strong customer retention and business wins, UK Mail said.
 
Its courier business saw a good increase in revenues, reflecting a number of new contract gains.
 
Revenues in the pallets business also showed an increase as the business continues with its recovery plan.
 
Guy Buswell, chief executive of UK Mail, said: “Our business has continued to perform well with good volume growth in both our parcels and mail businesses, showing the strength of our customer offering.

“Meanwhile our new one hour delivery window project has been implemented and is being rolled out across our network, enabling us to provide our customers with industry leading services in this key area.
 
“We are making good progress with strategic investment in our business.  Our new central sortation hub near Coventry is under construction, and is currently on track to be operational in mid-2015. 

“Once completed this new facility will provide us with a strong platform for further volume growth and future operating efficiencies.
 
“As expected, the coming year will be something of a transitional period for the Group, reflecting the current programme of investment, but our outlook for our trading performance is unchanged.”
 
Meanwhile, the group has appointed Carl Moore to the board as group operations director.

Moore joined UK Mail in 2007, having previously held a number of senior positions in parcel distribution companies across the UK.
 

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