UK Mail Group today announced it increased revenues 2% in the January-March final quarter of its2009-2010 business year thanks to higher mail and parcel volumes.
“The fourth quarter has seen solid progress, with group revenues for the period increasing bysome 2% year on year, leading to group revenues for the full financial year being in line with theprevious year,” the British postal and parcels operator said in a pre-close trading update.
In the second half of the 2009-10 year, the Parcels business continued to mprove, increasingboth revenue and market share, with continued pricing pressures more than offset by strong volumegrowth, the company stated.
The Mail business also continued to grow its revenues, launch innovative new products and winnew customers. Under the recent contract with Royal Mail, UK Mail will be able to operate a packetcollection and delivery service, utilising Royal Mail for final delivery. “This will enableus to offer customers a price competitive service in the high growth packet sector of the postalmarket,” the company added.
The Specialist Services division showed further overall revenue growth, with the Palletsbusiness showing an improving trend of performance and the Courier business continuing its stronggrowth through the second half.
“As a result of this good trading performance, we are confident about the outcome for thefull year,” the company stated. UK Mail Group will report its preliminary results for the yearended 31 March 2010 on 19 May 2010.
In the year ending March 31, 2009, UK Mail Group (then trading under the former name of BusinessPost Group), increased group revenue by 7.6% to £385.7 million and improved its operating profit by14.5% to £16.6 million. The parcels division saw revenue drop by 4.2% to £172.3 million but itsoperating profit (before exceptional items) improved by 6.5% to £16.4 million. The mail divisionincreased revenues by 19.8% to £164.5 million and its operating profit went up 16% to £11.6million.
