UK Mail posts upgrade ahead of Royal Mail IPO

 
Marion Dakers

PRIVATE postal company UK Mail hopes the Royal Mail sell-off will boost its business case among big investors.

Chief executive Guy Buswell said the privatisation plan is “positive for us, the Royal Mail and the UK at large”.

“We think people will look at our business more in the City as we will be the comparator for Royal Mail in the sector,” he told City A.M.

The government is today expected to unveil more details of the Royal Mail sale, in what is set to be one of the biggest initial public offerings (IPOs) in Europe this year.

UK Mail, which listed in 1993, yesterday said it was trading “well ahead” of previous management expectations over the past quarter, with parcel volumes up 25 per cent on the back of soaring online retail.

Underlying revenues rose three per cent, in spite of the tough economic conditions keeping a lid on mail volumes.

The firm remains in talks with the Department for Transport over a possible High Speed 2 relocation package. UK Mail’s Birmingham hub could move to make way for the rail link.

Shares in UK Mail closed up 7.77 per cent yesterday, valuing the company at £303.8m.