UK Mail Group records 63% rise in profits

UK Mail GroupTheUK Mail Group has recorded a 63 per cent rise in pre-tax profit during the first half of the year as it recorded a strong growth in online sales delivery.

The company, which provides parcels, mail and logistics services, announced that its pre-tax profit increased to £11.9 million pounds during the first half of the year till 30 September, 2013 compared to £7.3 million recorded during the same period of the previous year. The revenues of the firm rose 7.9 per cent to £243.4 million during the period.

UK Mail was the biggest independent parcel and mail delivery firm until the Royal Mail was privatised by the government in October. The company said that the average daily volumes rose 25 per cent in its parcels business mainly backed by online shopping deliveries. UK Mail also raised its interim dividend to 7.1p from 6.4p a year earlier.

Chief executive Guy Buswell said, "This has been a period of very strong growth, driven particularly by strong increases in our parcels volumes. Trading to date in the second half has been in line with our expectations and we remain confident of a positive outcome for the full year. We are now entering the next phase of strategic investment."