Trading Statement (1573B)
12 April 2012 - 4:00PM
UK Regulatory
TIDMUKM
RNS Number : 1573B
UK Mail Group PLC
12 April 2012
12 April 2012
UK Mail Group plc
PRE-CLOSE TRADING UPDATE
UK Mail Group plc (the "Group") today issues the following
pre-close trading update for the financial year ended 31 March
2012.
Overall performance for the fourth quarter was in line with our
expectations. Reported Group revenues for the quarter showed an
increase of some 14% compared to the same period in the previous
year, giving total reported revenue growth for the financial year
of some 8%. Adjusting for the increase in Royal Mail prices
implemented on 6 May 2011, underlying Group revenues for the
quarter increased by some 8%, giving a total underlying revenue
increase for the year of some 3%.
Our Parcels business continued the trends we have seen
throughout this year. Volume growth of some 10% compared to the
previous year was driven by an increase in internet shopping
related home deliveries. The change in mix towards B2C did restrict
the level of revenue growth and the challenging pricing environment
continued to put pressure on margins.
Our Mail business had a solid final quarter and showed good
growth in its revenues, on both a reported and underlying basis,
for the quarter and the full year. This growth was primarily in the
business class segment.
Our Courier and Pallets businesses both reported revenue growth
for the full year.
We have made further progress with our plans to re-structure the
business and to reduce our fixed cost base. In the second half we
announced the closure of a further two depots, this brings the
number of closures in the year to four, reducing our network to 50
depots. The cost of these actions will mean that the exceptional
item for the full year will be some GBP2m.
The Group remains in a sound financial position.
Outlook
We continue to assume that UK economic conditions will remain
tough throughout 2012 and tight control of our costs will remain a
key focus to offset the impact of the competitive pricing
environment.
Our strategy remains to continue to build competitive advantage,
developing and investing in our low cost integrated network and
bringing to market new products and services to seek to drive
profitable revenue growth.
UK Mail Group will report its final results for the year ended
31 March 2012 on 22 May 2012.
- 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:
All information in this announcement is sourced from UK Mail's
unaudited management accounts. Statements made in this announcement
that look forward in time or that express UK Mail's management's
beliefs, expectations or estimates regarding future occurrences are
"forward-looking statements" within the meaning of the United
States federal securities laws. These forward-looking statements
reflect management's current expectations concerning future events
and actual results may differ materially from current expectations
or historical results.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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