UK Mail Group sales up 13% on last year

UK Mail Group is expecting a 13% increase in revenues in its second half of the year, compared to the same period last year, when it reports its results next month. The company said part of the growth stemmed from an increase in Royal Mail’s prices as of April 2012, but aside from this and adjusting for one less working day than in the first six months of 2011, group revenues would have grown 10% year-on-year.

In a pre-close trading update the company said its mail business was continuing to show good growth with existing customers being retained while new customers are also being added.

“This business remains well positioned in its market with a good pipeline of new business opportunities,” the Birmingham-based firm said.

UK Mail’s parcels business also showed good revenue growth in the six months up to the end of September, with ongoing volume increases but the mix continuing to shift more from business-to-business towards business-to-consumer along thanks to the soaring UK ecommerce market.

UK Mail said its courier business was continuing to show a decline in revenues, “as expected”, while its pallets business did achieve growth despite challenging operating conditions.

Looking ahead, the company said it expected economic conditions to remain challenging through into 2013, but that its key focus was on keeping tight control of costs.

“We have leading and differentiated positions in our markets, a highly competitive business model, and the Group remains in a sound financial position, all of which gives us confidence for the future,” the company said.

UK Mail Group currently has a national network of 50 sites and 2,500 vehicles in the UK, and offers a range of time-sensitive and secure delivery services for parcels, letters and pallets.

The company will report interim results for the six months up to 30 September 2012 on 21 November.