UK Mail Group reveals "satisfactory" first half figures

UK Mail Group is expecting a 13% increase in turnover for the first half of this year, as it moves into a “challenging” 2013.

Excluding  Royal Mail price hikes that came into force on 2 April, the group is expecting a 10% increase in turnover on last year’s figures, as revealed in its pre-close trading statement published today (9 October).

The firm stated that its performance in the first half of this year, ended 30 September, was “satisfactory” and  in line with its expectations.

Its mail and parcel businesses have shown “good revenue growth”, however its courier business experienced a decline in turnover, which the firm states it was expecting as one of its customers was transferred to its parcel division. It also expects its pallets division, UK Pallets, to achieve revenue growth for the first half of this year.

Its Mail division has seen a rise in parcel volumes since last year, with an increase in B2C parcel volumes as well as a number of recent customer wins. It has also seen “strong customer retention” across its mail business.

The parcel delivery firm remain confident as it moves into a challenging pricing environment in 2013 and plans to maintain “tight control” of its costs as it moves into the second half of the year.

Earlier this year, the group revealed a pre-tax profit of £12.9m, down 19.5% on the previous year’s figures, for the 12-months ending 31 March.

UK Mail was unavailable for comment on its recent contract wins.