UK Mail is anticipating a fall in both pre-tax profit and turnover for the year ended 31 March 2016 after the installation of incompatible technology incurred huge costs.

The group, which has struggled since its new facility was fitted with automatic sortation technology that wasn’t compatible with its operation, expects to see its turnover drop by 1% for the year.

In a trading statement, UK Mail said it expected a fall in pre-tax profit that was “in line with management expectations”.

The group saw its profit fall by more than 80% in the six months ended September 30 last year, as a result of the new facility’s “teething issues”.

Former chief executive Guy Buswell, who stepped down following the debacle last November, said that these losses were “more significant than expected”, and that the group’s expectations for the year just ended had “softened” as a consequence.

However the group was set to receive £10.3m from the government by way of compensation for having to move away from an HS2 site.

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