UK Mail chief executive Guy Buswell has said the company will be investing in its depot network and automated sortation equipment after delivering an18% uplift in pre-tax profit.
The firm’s latest figures, published today, revealed that group turnover was up 10% on the previous year, while pre-tax profit was up at £17.8m for the year ended 31 March 2013 (2011/12: £15.1m).
Parcel volumes grew by 21% in the second half of the year, taking the total annual growth to 17% on last year’s volumes, due to new customer wins and a shift towards the B2C sector. Turnover in the division was up 10% to £189.3m.
Despite the downturn in mail volumes across the market, turnover in its mail division was up 16% at £241.6m, with a 2% increase in volumes.
It said this was due to winning more business from existing customers switching from Royal Mail after its price increase in April 2012.
Its courier business saw turnover fall by 19.6% to £16.5m, down from £20.5m during the previous year, which it attributed to the loss of a major customer in early 2012.
In good shape
Buswell said: “We’re in very good shape for the future and our share price is currently up 12%.”
He added that the company plans to expand capacity at five depots nationwide throughout 2013, including doubling capacity at its Slough depot. It is also in talks with the DfT regarding its HS2 plans, which will involve relocating its Birmingham hub.
Buswell added that it will be investing £20m in automated sortation equipment, following the partial installation in its Birmingham hub in 2010.
It intends to increase the level of automatic sortation to 80% of its parcel volumes, up from the current level of 20%. He expects this will be installed by September 2014.
- Shares in UK Mail rose by 46p to 510p per share in trading this morning. Read our analysis in the MT Tracker
