UK Mail Group plc announces the following Interim Management Statement covering the period 1 April 2014 to 30 June 2014.
We have made a solid start to the current financial year, with overall performance for the first quarter in line with our previous expectations.
Reported Group revenues for the first quarter increased by some 2.5% compared to the same period in the previous year. Adjusted for there being one less working day in the period compared to the same period last year, the underlying revenue increase was some 4.5%.
Our Parcels business continued to deliver a good performance, with daily volumes for the quarter increasing by some 10% compared to the same period last year. This volume growth was partly driven by an increase in home deliveries related to online shopping, with a continuation of the mix change towards B2C, as previously guided. We expect that the level of parcels volume growth will continue to moderate going forward as we annualise the higher volume growth achieved during the last financial year, reflecting the partial and temporary capacity constraints that we have previously disclosed, as we develop our new expanded and automated hub.
In our Mail business daily volumes were slightly up on the same period last year. Our Mail business has recently won a number of new tenders which we expect will lead to good volume growth for the remainder of the financial year.
Our Courier and Pallet businesses showed revenue increases compared to the same period in the previous year.
The Group remains in a sound financial position.
Our strategic investments are progressing to plan. Our new automated hub is on track to be operational from May 2015, providing a significant step forward in how we operate; creating extra capacity and reducing operating costs. Our key objectives during the relocation process will be to retain the knowledge and experience of our teams while maintaining our high levels of customer service. Good progress is being made and we are on track to achieve our objectives in this key area.
With the strength of our market position, a well invested, integrated and automated network, and a growing suite of innovations and industry-leading products and services, we remain excited about the medium term growth prospects for UK Mail.
The Group’s Annual General Meeting will take place at 12.00pm today, 9 July.
The Group expects to issue a pre-close trading update for the half year ended 30 September 2014 in early October 2014.