9th Apr 2014 09:58
LONDON (Alliance News) - UK Mail Group PLC Wednesday said that revenues in the fourth quarter increased, and trading for the full-year to March 31 is expected to be in line with its expectations, boosted by good volume growth in its parcels and mail businesses.
The parcels, mail and logistics services company, and competitor to Royal Mail PLC, said that reported group revenues in the fourth quarter were up some 6%, and revenue growth for the year is around 7%.
It said its parcels business delivered a good performance, with volumes for the fourth quarter up 15%, driven partly by an increase in home deliveries on the back of online shopping.
Its mail business achieved revenue growth in the quarter, as mail volumes increased, which it said continues to be driven by strong customer retention and business wins.
"Our new one hour delivery window project has been implemented and is being rolled out across our network," said Chief Executive Guy Buswell in a statement.
The group said its courier business also saw a good increase in revenues, boosted by a number of new contract gains.
Revenues in its pallets business rose, as the business continues with its recovery plan.
The group said it remains in a sound financial position. It has been investing in capacity, with a new central sorting hub near Coventry, which is currently under construction. It said that the facility is currently on track to be operational in mid 2015, and once completed will provide its with a strong platform for further volume growth and future operating efficiencies.
"The coming year will be something of a transitional period for the Group, reflecting the current programme of investment, but our outlook for our trading performance is unchanged," said Buswell.
The group also announced the appointment of Carl Moore to the board, as Group Operations Director. Moore joined UK Mail as Operations Director in 2007, having previously held a number of senior positions in parcel distribution companies across the UK.
UK Mail shares were up 1.7% at 640.72 pence per share Wednesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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