However, the company said it expected the economic environment to remain challenging in the UK in the current year and pricing to remain competitive.

UK Mail said underlying revenue rose 3 percent for the April 1 to June 30 period.

Revenue from the company's mail services business, which accounts for over half of the company's overall revenue, were slightly down. However, volumes in the mail services business were ahead of last year.

UK Mail, the country's largest independent parcels, mail and logistics services company, said daily volumes at its parcels business increased 25 percent during the first quarter, driven by home deliveries of goods bought online.

British consumers have progressively been shopping on the internet, where prices are unencumbered by high-street overhead costs.

The surge in e-retailing more than doubled state-backed rival Royal Mail Group Ltd's annual profit earlier this year.

UK Mail's shares closed at 515 pence on the London Stock Exchange on Monday. They have risen about 18 percent in the last three months.

(Reporting by Richa Naidu and Karen Rebelo in Bangalore; Editing by Supriya Kurane)