Pre-close Trading Update (6473P)
06 October 2011 - 5:00PM
UK Regulatory
TIDMUKM
RNS Number : 6473P
UK Mail Group PLC
06 October 2011
6 October 2011
UK Mail Group plc
Pre-Close Trading Update
UK Mail Group plc today issues the following pre-close trading
update for the half year ended 30 September 2011.
Overall performance in the first half of the year is anticipated
to be in line with our expectations, with a satisfactory trading
performance in the first quarter and a more challenging second
quarter.
Reported Group revenues for the first half are expected to show
an increase of some 5.5% compared to the same period in the
previous year. Adjusting for the increase in Royal Mail prices
implemented on 6 May 2011, offset by there having been one less
working day than in the previous year, underlying Group revenues
increased by some 2%. On an underlying basis Group revenues showed
a slight increase in the second quarter, compared to the increase
of some 4% achieved in the first quarter. We expect the market
conditions experienced in the second quarter to continue for the
remainder of the current financial year.
Our Mail business grew its revenues on a reported basis; on an
underlying basis, revenues were broadly flat with the same period
in the previous year. Our Mail business remains well positioned in
its market with a strong pipeline of new business
opportunities.
Parcels revenues continued to grow compared to the same period
in the previous year, reflecting the benefit of recent customer
wins, albeit in a pricing environment that remains challenging and
with a continuation of the volume mix seen in the second half of
last year.
Our Courier business has continued to grow its revenues, whilst
our Pallets business has performed well in a market that remains
challenging.
We currently expect that the Group's underlying operating profit
for the half year will be broadly in line with last year, after
adjusting for the profit impact of one less working day (estimated
at some GBP500k). We have taken further action to reduce the fixed
costs of our business, with the closure of two depots reducing our
total number of parcels/mail sites to 52, along with some
restructuring in a number of other areas of our business, which we
expect will result in one off costs of some GBP700k.
We continue to invest in our I.T. systems to develop increased
capability and further enhance the customer services we can
provide; to this end we have recently successfully completed a
significant upgrade to our hardware platform. We are also focused
on innovation in our markets to continue to drive our business
forward.
The Group remains in a sound financial position.
The Group will report its interim results for the half year
ended 30 September 2011 on 16 November 2011.
- Ends -
Enquiries:
UK Mail Group plc
Guy Buswell, Chief Executive 0121 335 1111
Steven Glew, Finance Director 01753 706070
MHP Communications
John Olsen
Ian Payne 020 3128 8100
Notes to editors:
About UK Mail Group plc
UK Mail Group plc of the leading independent parcels, mail and
logistics services companies within the UK and one of the main
alternatives to Royal Mail for business mail requirements.
Forward-looking statements
This announcement contains certain forward looking statements
with respect to the financial condition, results of operations and
businesses of UK Mail Group plc. These statements involve risk and
uncertainty because they relate to events and depend upon
circumstances that will occur in the future. There are a number of
factors that could cause actual results or developments to differ
materially from those expressed or implied by these forward-looking
statements. Nothing in this announcement should be construed as a
profit forecast.
The information in this announcement is based on unaudited
management accounts.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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