UK Mail has reported a “satisfactory” first quarter to 10 July, characterised by good parcelvolume growth and declining courier revenues, in a continuing “tough economic backdrop”.
Reported group revenues for the first quarter increased by 13% compared to the same period theprevious year. Adjusting for the increase in Royal Mail prices implemented on 2 April 2012,underlying group revenues increased by around 10%.
Peter Kane, Chairman of UK Mail Group, told yesterday’s Annual General Meeting (AGM): “We havemade a satisfactory start to the financial year, with trading performance for the first quarter inline with our expectations. Our Parcels business showed good volume growth on the previous yearand, although we continue to see a mix change towards B2C, revenues grew solidly.”
He said the company’s Mail business showed good revenue growth, both on an absolute and anunderlying basis. “Mail remains well positioned in its market with a healthy pipeline of newbusiness opportunities,” he added. “Our Courier business saw a decline in revenues, as expected,whilst our Pallets business has again achieved revenue growth.”
He said the company remained in a “sound” financial position. “We fully expect the economicbackdrop to remain tough in 2012 and the pricing environment to stay competitive,” Kane added. “Weare planning accordingly, with tight control of our costs continuing to be a key focus.
“We have leading and differentiated positions in our markets, a highly competitive businessmodel, and a strong balance sheet, which gives us strategic flexibility. We are therefore confidentthat we will come through this period of significant change in our industry as one of the strongestplayers in the markets in which we operate.”
The UK Mail Group, formerly known as Business Post Group, is one of the largest independentparcels, mail and logistics services company within the UK, offering delivery solutions bothlocally and worldwide. The group has a national network of 50 sites and 2,500 vehicles, offeringbusiness customers an integrated service with a range of time-sensitive and secure delivery optionsfor parcels, letters and pallets.
