"Good performance in fourth quarter"

UK Mail Group plc (the "Group") today issues the following pre-close trading update for the financial year ended 31 March 2014.

Overall performance for the fourth quarter and the full year is expected to be in line with our previous expectations.  

Reported Group revenues for the quarter are expected to show an increase of some 6% compared to the same period in the previous year, giving total reported revenue growth for the financial year of some 7%.  There being one more working day than in the same period last year, underlying Group revenues for the quarter are expected to show an increase of some 4%, giving a total underlying revenue increase for the year of about 5%.

Our Parcels business continued to deliver a good performance, with volumes for the quarter increasing by around 15% compared to the same period last year.  This volume growth was again partly driven by an increase in home deliveries related to online shopping, with a continuation of the mix change towards B2C that we have previously seen.

Our Mail business achieved revenue growth due to a further good increase in mail volumes.  This growth continues to be driven by strong customer retention and business wins.

Our Courier business saw a good increase in revenues, reflecting a number of new contract gains.

Revenues in our Pallets business also showed an increase as the business continues with its recovery plan.

The Group remains in a sound financial position.

Guy Buswell, Chief Executive of UK Mail, said: 

"Our business has continued to perform well with good volume growth in both our parcels and mail businesses, showing the strength of our customer offering. Meanwhile our new one hour delivery window project has been implemented and is being rolled out across our network, enabling us to provide our customers with industry leading services in this key area.

We are making good progress with strategic investment in our business.  Our new central sortation hub near Coventry is under construction, and is currently on track to be operational in mid 2015.  Once completed this new facility will provide us with a strong platform for further volume growth and future operating efficiencies.

As expected, the coming year will be something of a transitional period for the Group, reflecting the current programme of investment, but our outlook for our trading performance is unchanged."

UK Mail Group will report its final results for the year ended 31 March 2014 on 21 May 2014.

- Ends -

Enquiries:

UK Mail Group plc

Guy Buswell, Chief Executive

Steven Glew, Finance Director

0121 335 1111

01753 706070

MHP Communications

John Olsen

Giles Robinson

020 3128 8100

Notes to editors:

About UK Mail Group plc

UK Mail Group plc is one of the leading independent parcels, mail and logistics services company within the UK and one of the main alternatives to Royal Mail for business mail requirements.

Forward-looking statements

This announcement contains certain forward looking statements with respect to the financial condition, results of operations and businesses of UK Mail Group plc. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.

The information in this announcement is based on unaudited management accounts and is before any exceptional items.

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