UK Mail Group yesterday forecast a one per cent drop in first-half reported revenue, blaming a decline in its mail business and weaker-than-expected parcel volumes.
Revenue from mail business, which accounted for nearly half the company’s total revenue, was expected to fall by about six per cent in the six months ended 30 September, it said.
However, overall financial performance for the half year was expected to be broadly in line with its previous expectations, said UK Mail, which provides mail, parcels and logistic services.
“The seasonal pickup after the normally quiet summer period does not seem to have occurred yet at the rate anticipated and volumes in Q2 have been below expectations,” Investec Securities said in a note yesterday.
Shares closed on 490p, down 13.27 per cent.