Jersey Post has bought Portsmouth haulier Fraser Freight, after what the carrier described as one of its “most financially challenging years” to date.

The postal operator said that the acquisition was a move to open new revenue streams, off the back of the declining letters market.

Since 2007, Jersey Post’s letter volumes have fallen by 60%, although this has been offset by a 200% rise in packages and parcels.

The operator’s chief executive Tim Brown, said: “2016 is one of the most financially challenging years yet for Jersey Post, and we must find secure, profitable opportunities that can help us to build on our existing core skills and business strengths in order to address this situation.

"Although the acquisition of Fraser Freight is currently subject to regulatory approval, we are very excited by what this deal will mean to our business and the potential to enhance our existing services."

Fraser Freight, founded in 1993, holds an O-licence for 14 vehicles and 14 trailers. The company operates across Europe, sending loads to France; Belgium; Holland; Germany; Spain and Italy.

Ross Fraser, Fraser Freight MD, said the company had been “actively seeking a buyer for the business”.

He added: " There are strong synergies between our mutual desires for business growth, and I am excited by what this deal means to both Fraser Freight and Jersey Post.”

Jersey Post does not intend to make any redundancies at either business.

Fraser added: “It is very much business as usual for Fraser Freight, providing high quality logistics services to our valued clients."