UPS's UK business recorded “modest growth” last year in both turnover and pre-tax profit, with revenue rises largely driven by its European and international businesses.

Turnover rose 8.7% to £944.9m in the year to 31 December 2016 (2015: £869.1m), with pre-tax profit up 6.9% to £62.3m (2015: £58.3m).

However, whilst the UK market provided the lion’s share of the turnover at £383.3m (2015: £380.2m) it rose just 0.8% in the period. This compared to a 15% revenue rise from its European business to £338.9m (2015: £294.9m), and a 33.7% rise in revenue from its international operation to £222.7m (2015: £194m).

In the directors’ strategic report the company said: “Turnover has improved during the year and the directors expect a modest growth in both domestic and international revenue to continue.”

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Going forward the company said it expected a similar level of activity in 2017, adding that the principle risks to the company are the possibility of a “major downturn” as a result of the UK’s plans to exit the EU, strong competition in the sector and the risk of a competitor being able to provide the same quality of service at a cheaper cost.

However, after studying the impact of Brexit it believes it is “in a position to handle any possible financial implications that may arise.”

UPS did not respond to a request to comment.