Royal Mail rival lands 63 per cent profit increase

UK Mail group has reported 63 per cent increase in half year pre-tax profits. The private postal company reported profit before tax of £11.9m and post tax profit of £9.3m.

The improving economy and rises in parcel revenue were major factors contributing to the company's bumper profits. Group revenues reached £243.4m compared with £225.7m, in the previous six months. Parcel revenue rose 21.4 per cent while mail revenues declined by 0.3 per cent. Underlying profit was approximately 42.5 per cent.

The private postal service company is the Royal Mail's only major British competitor alongside Deutsche Post and TNT.

Chief executive officer, Guy Buswell, welcoming the results 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.