UK Mail reports strong performance in peak Christmas period
08 January 2013
Parcels business delivered an improved trend, with volumes up 20.0%
UK Mail Group plc has issued an Interim Management Statement covering the period 1 October 2012 to 31 December 2012. Overall, sales and trading performance for the third quarter was above previous expectations. Reported Group revenues for the quarter showed an increase of some 14.0% compared to the same period in the previous year. Adjusting for the increase in Royal Mail prices implemented on 02 April 2012 and there being one more working day than in the same period last year, underlying Group revenues increased by some 8.0%.
The Parcels business delivered an improved trend in performance, with volumes increasing by some 20.0% compared to the same period last year. This volume growth was partly driven by an increase in internet shopping related home deliveries, which resulted in a continuation of the mix change towards B2C that the Company saw in the first half. Working with customers, the Company sought to manage peak Christmas volumes to ensure they were within its expanded capacity. Operations were very well managed across the peak period, which ensured that customer service levels were maintained throughout this very busy period.
The Mail business again saw good revenue growth, due to a further increase in mail volumes. This growth continues to be driven by strong customer retention and new customer wins.
The Company’s Courier business had a decline in revenues, as expected. The Pallets business again achieved revenue growth, though with a continuation of the challenging operational conditions seen in the first half.
Looking ahead, the Company assumes that the economic backdrop will remain challenging into 2013 and the pricing environment will stay competitive. It is confident that it will come through this period of significant change in the industry as one of the strongest players in the markets in which it operates.
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