UK Mail Group announced it increased revenues 1% in the April–June first quarter of itsfinancial year, thanks to its growing parcel business and mail revenues.
“We have made a satisfactory start to the financial year, with trading performance in line withmanagement expectations”, said Chairman Peter Kane.
“Our parcels business continued to grow its revenues, aided by early signs of an easing in thepricing environment. The launch of our retail logistics service within this division is progressingwell and we now have our first active customers for this service,” he explained.
Mail revenues were also in line with the previous year. The group expects revenue growth in itsmail business to be weighted in the second half of the year, as the impact of new customer wins andgrowth of its new product ‘Packets’ and other new product areas more-than offset the overalldecline in transactional volumes in the UK mail market.
“We have started trading with our first customers in Packets, and have been encouraged by themarket reaction to this important new product offering,” Kane confirmed.
He stressed that the company’s courier business has continued its strong revenue growth, whilethe pallets business has shown weaker results in a continuously challenging market.
