Online shopping boosts UK Mail profits

[TrueBlueTerrier]

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Shares in parcel delivery business UK Mail shot up 10% today thanks to online shopping.

UK Mail told the City to up its profit expectations after revenues between April and July came in 6% higher than the same time a year earlier. The increase halved when taking account of the extra working days in this year’s period, however.

Parcel volumes for the quarter shot up by 25%. The business mail division saw revenues drop slightly, but UK Mail, the country’s biggest independent parcels, mail and logistics services company, said it had a “good pipeline of new business opportunities” ahead.

“We still assume that the UK economic backdrop will remain challenging in the current year and that the pricing environment will stay competitive,” UK Mail said. But hinting at the impact of the sell-off of rival Royal Mail, planned for the autumn, UK Mail added: “As our industry continues to evolve, we continue to be confident that we can use our inherent strengths to adapt to the opportunities and gain further market share.”

Shares in UK Mail rose 52p to 567p.

[DGP1]

Think about how much money their shares would have gone up if they'd delivered all the work they took on