UK Mail Group has made a “satisfactory” start to its financial year, with revenue up by 13% compared with the same period last year, or by 10% if excluding Royal Mail price hikes implemented on 2 April.
First-quarter results, for the period 1 April to 10 July, show mixed fortunes across the group’s four divisions - parcels, mail, courier and pallets - with tight cost control remaining a key focus across the board.
The parcels business showed good growth in volumes on the previous year, with revenue increasing solidly and a “mix change towards B2C”.
Mail remains well positioned in its market, reveals UK Mail, with a healthy pipeline of new business opportunities and has experienced good revenue growth on last year, as has the group’s pallets division, UK Pallets.
However, UK Mail’s courier business saw a decline in revenue in the first quarter, which the company says was expected.
Peter Kane, chairman of UK Mail Group, says: “We fully expect the economic backdrop to remain tough in 2012 and the pricing environment to stay competitive. We are planning accordingly, with tight control of our costs continuing to be a key focus. We have leading and differentiated positions in our markets, a highly competitive business model, and a strong balance sheet which gives us strategic flexibility.”
He adds that the business is confident it will come through “this period of significant change in our industry” as one of the strongest players in the markets.
