Sales and trading performance was ahead of expectations at UK Mail in the third quarter, the company has said in a trading statement.
Underlying group revenue was up eight per cent for the three months to 31 December.
The parcels business saw volumes up 20 per cent largely as a result of the growth in online retail. The mail business also saw good revenue growth, although the courier business reported a sales fall.
“Our Pallets business again achieved revenue growth, though with a continuation of the challenging operational conditions seen in the first half,” it said.
Chief executive Guy Buswell said: “We still assume the economic backdrop will remain challenging into 2013 and the pricing environment will stay competitive. We are well prepared for this and with our highly competitive business model, tight focus on costs and strong balance sheet, we remain confident that we will come through this period of significant change in our industry as one of the strongest players in the markets in which we operate.”