UK Mail Group, Britain’s largest independent postal operator,yesterday reported a “satisfactory” first fiscal quarter, with growth in its mail, courier andparcels businesses, and “resilient” performance in the challenging pallet sector.
Chairman Peter Kane said that economic conditions remained “difficult” but a continued strong focus on driving efficiency and innovation made meant the grouphad been able to defend and increase its market share, leaving it “in a sound financial position”.
In an Interim Management Statement covering 1 April to 1 July, hetold the group’s AGM yesterday: “We have made a satisfactory start to the financial year, withtrading performance in line with management expectations. Reported group revenues for the firstquarter increased by some 5.5% compared to the same period in the previous year.” Adjusting for oneless working day than in the previous year, as well as the increase in Royal Mail pricesimplemented on 6 May 2011, underlying group revenues increased by around 4%.
“Our Parcels revenues showed satisfactory growth on the previousyear, reflecting the benefit of recent customer wins, albeit in a pricing environment that remainschallenging and with a continuation of the volume mix seen in the second half of last year,” hesaid.
The company’s Mail business continued to grow its revenues, bothon an absolute and an underlying basis. “Mail remains in a good position with a strong pipeline ofnew business opportunities,” he added.
“Our Courier business has continued its good revenue growth, whileour Pallets business has shown resilient performance in a market that continues to bechallenging.”
