Home deliveries for online shopping have driven growth in UK Mail’s parcels business – with a 20 per cent rise in the fourth quarter, the group said in its pre-close trading update.
The Mail business also reported good revenue growth, although the Courier business had a decline in revenues.
Revenue in the Pallets business declined. “This business has faced a difficult year, however its position is improving and it enters the new financial year with a new management team and the previous network issues now largely resolved.
The group expects overall performance for the fourth quarter to be above previous expectations. Revenues for the quarter are expected to show an increase of some 6 per cent compared to the same period in the previous year, giving total reported revenue growth for the financial year of some 11 per cent.
Chief executive Guy Buswell said: “I am particularly pleased with the performance of our parcels business where volume growth continues to be high.
“We still assume that the UK economic backdrop will remain challenging in 2013 and that the pricing environment will stay competitive. Our industry also continues to evolve, resulting in a number of opportunities and challenges. With our highly competitive business model, tight focus on costs and strong balance sheet, we remain confident that we will continue to make good progress.”
Home deliveries drive growth at UK Mail
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