UK Mail has warned that profit for the full year will be below expectations as a result of tough trading and bad weather in the run-up to Christmas.
Overall group revenues for the quarter starting on 1st October increased by some four per cent year on year, but, in a trading statement the group said: “We now expect group profit for the full year to be below previous expectations and broadly in line with last year.”
As the third quarter developed, underlying volume growth was generally lower than expected across the parcels, courier and pallets businesses, with the traditional December pick-up not materialising.
“This was compounded by the snow in December causing disruption to our customers and operations.
“While we were able to manage our operations such that over 99 per cent of our Christmas parcel deliveries were delivered before Christmas, the weather meant that we incurred additional cost in our network to hold and deliver consignments.”
The group said it was cautious about the economic conditions. “However, the adverse factors experienced during the quarter were largely one-off in nature and our business remains strong relative to our competitors and well positioned in its various markets.”