UK Mail takes £700,000 hit to close two sites

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UK Mail Group has closed two depots to trim costs as trading conditions in the in the B2B mail and parcels sector in the second half of its trading year grew more challenging.

In pre-close trading update the group, which also owns UK Pallets, revealed it had taken a £700,000 hit to close the sites and reduce its fixed costs.
It leaves UK Mail operating 52 parcel/mail sites across the country.

In the six months ended 30 September revenues are predicted to be 5.5% ahead of last year. Adjusting for an increase in Royal Mail prices that came into force on 6 May 2011, offset by there being one less working day than in the previous year, group revenue increased 2%.

UK Mail says there was a marked slowdown in revenue growth in the second quarter compared to the first.

UK Pallets “performed well in a market that remains challenging”, and both UK Mail’s courier business and parcel revenues grew during the period.


In May UK Mail warned its mail business’s operating margin was set to come under pressure following Royal Mail’s decision to introduce its new pricing regime.

[DGP1]

In May UK Mail warned its mail business’s operating margin was set to come under pressure following Royal Mail’s decision to introduce its new pricing regime

Well, they know what they can do...............they can deliver it themselves and that way they don't have to complain about RMs pricing structure