UK Mail profits jump

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UK Mail today reported a year of good progress with strong momentum in the second half. Group revenues were up 10.8% to £475.4m (2012: £429.0m).

o Mail revenues up 16.1% to £241.6m (2012: £208.1m)

o Parcels revenues up 10.0% to £189.3m (2012: £172.1m)

Group profit before tax (before exceptional items) up 17.7% to £17.8m (2012: £15.1m).

Group profit before tax (reported) up 37% to £17.8m (2012: £12.9m).

Strong balance sheet, net cash at year end of £27.0m (2012: £18.4m).

Final dividend increased 5.1% to 12.4p per share (2012: 11.8p), giving a total dividend increase for the year of 3.3% to 18.8p (2012: 18.2p).

The company said it saw strong levels of customer retention and new client wins.

New services, including imail and ipostparcels are making good progress.

Major plans for increased automation are announced today.

Guy Buswell, CEO, said: 'I am pleased to report a very strong performance in the second half, which has led to a particularly good result for the year. Trading in the initial weeks of the current year has seen this positive trend continue, with further good growth in parcels volumes.

'Our industry is undergoing some fundamental changes, from the rise in e-commerce and e-communication to the expected forthcoming privatisation of Royal Mail, a valued business partner of UK Mail. Today's results demonstrate that our business model has the inherent strength to adapt to this changing market and grasp the opportunities that exist.

'We continue to invest in our business, maintaining our focus on innovation, efficiency and high service levels. Alongside this, we have today announced major plans for significantly increased automation across our network. These plans will be a key factor in driving further volume growth and margin enhancement for the Group. We thus remain confident we will continue to make good progress in the current year and beyond.'