10pc growth for UK Mail

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UK Mail says it expects to see a ten per cent rise in underlying revenue for the first half.

In a pre-close trading update, it said the Mail business continued to show good revenue growth both on an absolute and underlying basis.

“This business remains well positioned in its market with a good pipeline of new business opportunities.”

The Parcels business showed good revenue growth, based on continued volume increases compared to the prior year, it said. “This performance reflects the benefits of recent customer wins although we continue to see an ongoing mix change towards B2C.”

However, the Courier business saw a decline in revenues – though this was expected. The Pallets business achieved revenue growth albeit in challenging operating conditions.

It expects reported group sales to show an increase of about 13 per cent but adjustments for an  increase in Royal Mail prices and one less working day mean that underlying growth is expected to be about ten per cent.

“We expect the economic backdrop to remain challenging into 2013 and the pricing environment to stay competitive. We are continuing to plan accordingly, with tight control of our costs remaining a key focus,” the group said.

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