Year end expansion in all operating divisions apart from pallets, which closed in January, fostered a one per cent rise in reported group revenues for the year ended 31 March 2015, compared with the previous year.
In the fourth quarter parcels volume grew 12 per cent and mail volume grew five per cent. Courier revenue dipped slightly, but retained yearly growth. The increased parcel volume, however, pushed UK Mail beyond effective operational capacity, generating heightened expenses that are expected to last until the company completely transitions into its new Ryton, Tyne and Wear, hub in July.
For these reasons, UK Mail expects its performance to land “around the lower end of the current range of expectations”.
Chief executive Guy Buswell said: “We continue to see new opportunities to increase our share of the UK parcels market as a result of the improved competitive environment.”