UK Mail Group saw a 20% increase in parcel volumes and improved performance in its pallets division during the third quarter, it has revealed in an interim management statement today.
The firm saw an increase in turnover for its pallets business during the period, after seeing a significant decline in operating profit for the division during the first six months of the financial year.
Group sales were “above [our] previous expectations” for the period covering 1 October to 31 December 2012, and the firm saw a 14% increase in turnover compared to the same period in 2011.
Parcel volumes were up 20% compared to the same period in the previous year. The company said this had been driven by a mix change towards B2C volumes, which it also saw in the first half. Its mail business also saw good turnover growth, due to new customer wins and strong customer retention.
It also saw a decline in courier turnover in the period, which the firm said was expected.
Operations during the Christmas peak were “very well managed” claimed the firm, which worked with its customers to manage peak volumes to ensure they were within its capacity.
Chief executive Guy Buswell said: "We still assume the economic backdrop will remain challenging into 2013 and the pricing environment will stay competitive.
"We are well prepared for this and with our highly competitive business model tight focus on costs and strong balance sheet, we remain confident that we will come through this period of significant change in our industry as one of the strongest players in the markets in which we operate."
