British parcels and mail company UK Mail increased its revenues by a strong 13% in the sixmonths to September 30, 2012, after satisfactory trading in line with expectations and despite the
country’s weak economy.The company said today in a pre-close trading update for the April – September 2012 half yearthat its overall performance has been satisfactory and in line with expectations, with the trendsexperienced in the first quarter continuing into the second quarter.
Reported group revenues for the first half were expected to show an increase of some 13%compared to the same period in the previous year. Adjusting for the increase in Royal Mailprices implemented on 2 April 2012 and for one less working day than in the same period in theprevious year, underlying group revenues increased by some 10%.
In the 2011-12 year ending March 31, UK Mail had pre-tax profits of £12.9 million on revenues of£429 million.
Commenting on key business trends, UK Mail stated: “Our Mail business continued to show goodrevenue growth both on an absolute and underlying basis driven by strong customer retention and newcustomer wins. This business remains well positioned in its market with a good pipeline ofnew business opportunities.”
The Parcels business “again showed good revenue growth, based on continued volume increasescompared to the prior year. This performance reflects the benefits of recent customer winsalthough we continue to see an ongoing mix change towards B2C”, it said.
The smaller Courier business saw a decline in revenues as expected while the Pallets businessagain achieved revenue growth albeit in challenging operating conditions.
Looking ahead to the October 2012 – March 2013 half-year, UK Mail said: “We expect the economicbackdrop to remain challenging into 2013 and the pricing environment to stay competitive. Weare continuing to plan accordingly, with tight control of our costs remaining a key focus. Wehave leading and differentiated positions in our markets, a highly competitive business model, andthe group remains in a sound financial position, all of which gives us confidence for the future.”
UK Mail will report its interim results for the half year ended 30 September 2012 on 21November 2012.
