Business Post says UK Mail Q3 revenues up 60 pct (UK)

Parcel carrier Business Post Group PLC said third-quarter revenues in its growing mail business lifted 60 pct over a year earlier as it announced group trading in line with expectations.

Business Post, which is challenging state-owned postal carrier Royal Mail, said its mail operation, UK Mail, won significant contracts with new customers including MBNA and Norwich Union in the period.

“With these new contracts, we now handle some 10 pct of all mail collected in the UK,” the group said in a trading statement.

Business Post said group revenues between Oct 1 and Dec 31 increased 13 pct over a year earlier. Underlying group revenues in the period lifted by 20 pct, excluding revenues from a contract with FedEx terminated in April last year.

Underlying parcels revenues in the period were up 6 pct on last year and the group said it continued to see good growth in its business-to-business parcels operations, which represent around 80 pct of parcels revenues.

In its business-to-consumer operations, which represents 15 pct of the parcels business, its period-on-period performance was consistent with the first half.

Revenues in its specialist services business for the period were in line with last year.
“We have achieved a good revenue performance during the third quarter, trading performance is in line with management expectations and overall the board expects good progress for the year,” the group said in its statement.

Business Post will report preliminary results for the year ended Mar 31, 2008, on May 21.