Growth lower than expected at UK Mail

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UK Mail has warned shareholders that  fourth quarter volumes in its parcels business have been subdued and the important month of March was not expected to deliver its normal seasonal uplift in volumes.

“We currently expect revenue growth for the fourth quarter to be some 3 per cent and total revenue growth for the financial year ending 31 March 2011 to be some 2.5 per cent,” it said in a pre-close trading statement.

The parcels business had been affected by underlying economic conditions  and this, combined with the impact disruption in December and January, was likely to result in parcels business profits being below expectations.

“These issues have also impacted our Mail business, but to a lesser extent. We thus now expect Group profit before tax for the financial year ending 31 March 2011 to be in the region of £16 million.”

* Eurodis, the European parcel and pallet network moved 25 per cent more shipments last year than in 2009 following UK Mail’s entry into the consortium.

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