DELIVERY group UK Mail reported a solid end to the financial year yesterday, with revenues for the last three months up six per cent.
Parcel volumes rose by 15 per cent, which the London-listed firm said reflected the rapid growth of home deliveries for online purchases.
The company, which competes with Royal Mail and TNT Express, also said more businesses were signing up to its mail delivery, courier and pallet services.
The firm has started building its new sorting office in Coventry, which is due to open in mid-2015.
“As expected, the coming year will be something of a transitional period for the group, reflecting the current programme of investment, but our outlook for our trading performance is unchanged,” said chief executive Guy Buswell in a statement yesterday.
For the full year, UK Mail expects to report a seven per cent rise in revenues, or five per cent excluding an extra working day this year and other one-offs.
Investec analyst John Lawson, who has a buy rating on UK Mail stock, said the firm’s spending on IT and facility upgrades “should provide the group with a strong platform for further volume growth, along with increased operational efficiencies”.
UK Mail also announced yesterday that it has promoted operations director Carl Moore to the board with immediate effect.
Shares in the firm closed flat at 630p, giving UK Mail a market value of almost £350m.