Interim Results Nov 10
18 November 2010

For the 6 months ended 30 September 2010

INCREASED REVENUE AND PROFITS, NEW PRODUCTS GAINING TRACTION

Highlights   
  • Group revenues up 1.3% to £190.7m (2009: £188.2m)
    •  Mail revenues up 1.5% to £85.9m (2009: £84.6m)
    • Parcels revenues up 1.3% to £81.0m (2009: £80.0m)
  • Group profit before tax up 4.8% to £7.4m (2009: £7.0m)
  • Strong balance sheet, net cash at period end of £8.5m (2009: £3.6m)
  • Interim dividend of 6.4p per share (2009: 6.4p)
  • Retail Logistics launched during the period and making good progress
  • New Packets product winning major customers
Guy Buswell, Chief Executive Officer of UK Mail, said:-

“The Group has delivered a satisfactory performance in the first half, with continued revenue and profit growth and our new products and services making good progress.

In Mail, we are targeting revenue growth progression in the second half, as the impact of new customer wins and growth in Packets, together with additional volumes from existing customers, more than offset the ongoing overall decline in the UK transactional mail market. In Parcels, the continued progress of our Retail Logistics service should provide further growth opportunities in the second half and there are some signs that the general pricing environment is improving.  As always, market conditions for the balance of the year remain hard to predict and the final three months of the calendar year represent the key trading period for our business.

Overall the Group is in a good position, being well financed, with a strong presence in all our chosen markets, with increasing efficiency being achieved in our network, and new products and services starting to gain traction.” 

For further information, please contact:

UK Mail Group plc   

Guy Buswell, Chief Executive Officer    0121 335 1111
Steven Glew, Group Finance Director   01753 706 070
MHP Communications   
John Olsen
Ian Payne
Giles Robinson    020 7357 9477

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