First quarter daily parcel volumes were up 10% at UK Mail, but the firm expects growth to slow this year as it nears capacity.

It expects that parcel volumes will level out during the rest of the year, as indicated in May, as the relocation of its Coventry hub to make way for HS2 puts pressure on capacity.

Its interim statement covering the period from 1 April to 30 June also revealed that volumes in its mail business were up. It expects to see more growth during the rest of the year following recent contract wins.

Group turnover rose 2.5% compared to the same quarter in the previous year. Turnover in its courier and pallet businesses were also up on last year’s figures, though the firm did not disclose how much turnover in those divisions had increased by.

UK Mail said its new automated hub is on track to be operational in May 2015, which it hopes will create additional capacity and reduce cost.