UK Mail sees revenue increase
UK Mail has revealed that revenue for the second half of its financial year was up 2.8%. The result left Group revenues flat for the full year, ended 31 March 2010, at £385.2m (2009: £385.7m).
Mail revenues were up 5.4% to £173.5m (2009: £164.5m), whilst Group profit before tax was up 11.3% to £17.8m (2009: £16.0m).
Furthermore, Group profit before tax (before exceptional items) was up 4% to £17.8m (2009: £17.1m), whilst final dividend increased by 9.3% to 11.8p per share (2009: 10.8p), giving a total dividend of 18.2p (2009: 17.2p), up 5.8%.
This resulted in a “strong balance sheet”, with net cash balances at year end of £15.7m (2009: £9.5m).
The company also stated that its imail service continues to gain traction, whilst a new range of retail logistics services will create significant opportunities for parcels business in the future.
Guy Buswell, chief executive of UK Mail, said: “We have made good progress in the year, underpinned by our low cost network and the leading market positions of each of our businesses.
“Our Mail business has continued to grow revenues and profits, and is building a strong platform for future expansion through new product innovation, in particular in packets.
“Revenues in our Parcels business saw an improving trend in recent months with growth achieved in the second half, and this business is in an excellent position to benefit from a consolidating market.
“Our Courier business achieved excellent profit growth, and we see further opportunities from our ability to support national contracts with high service levels.
“The Board is recommending the first dividend increase since 2006, reflecting the significant performance improvement of the Group in recent years, the balance sheet strength and cash generative nature of our business, and the positive outlook for the Group.
“Our strategy remains to drive profitable revenue growth by investing in our highly efficient network and IT systems, and by developing new products and services that increase both the size of the market available to us and our share of that market.
‘Trading in the current year to date has been in line with management expectations and we remain confident in the Group’s long term growth prospects.”
