15th Jan 2014 08:14
LONDON (Alliance News) - UK Mail Group PLC Wednesday said revenues about 6% in the three months to end-December, buoyed by 15% growth in parcels volumes as it continued to benefit from the surge in online shopping.
The competitor to Royal Mail PLC said that parcel volume growth had moderated in its fiscal third quarter as it had predicted, citing the high growth rates it had experienced a year earlier.
In a trading update, it said its mail business also achieved good revenue growth in the period as it increased volumes. It courier business experienced a slight decline in revenues, as it had predicted, it said.
"I am pleased to report that we have again performed well during our peak Christmas trading period, maintaining our strong customer service levels even as volumes continued to increase," Chief Executive Guy Buswell said in a statement.
"It is clear from weekly volume patterns that shoppers were, more than ever before, leaving their online Christmas shopping to the last minute, as consumers increasingly trust that online deliveries will arrive on time, as promised," he added.
Last month, UK Mail for planning permission for a new hub near Coventry that it expects to move into in Spring 2015. It was forced to relocate because its existing hub is on the path of the proposed new high-speed rail link between London and the northwest of England. It struck a deal with the government to help fund the relocation. The new hub will give it more space and better automation.
In November, it had reported that a pretax profit of GBP11.9 million for the six months to end-September, up from GBP7.3 million a year earlier, driven by a near doubling of operating profit at its parcels operations. Revenues rose to GBP243.3 million, from GBP225.7 million, driven by a 21.4% increase in revenues in the parcels business.
Royal Mail has yet to reveal its performance over the Christmas period. However, last week it increased the prices it charges rivals like UK Mail, and big businesses, for using its services, saying the increases were necessary to ensure it can continue delivering letters to far-flung areas of the UK at a time when profits at its letters business are under pressure.
UK Mail shares were up 0.2% at 681.25 pence early Wednesday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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