UK Mail Hit By Recession
19 November 2009 - David Lynch
UK Mail (Business Post) has reported an 11 per cent fall in revenue from its parcel delivery service - from £9.6m to £80m. The company blamed the fall on the impact of the recession. Despite seeing a rise in business as a result of strike action at Royal Mail, the volume of letters had still fallen in real terms, reflecting a trend being felt throughout the postal industry as more and more businesses switch to online billing. However, UK Mail secured two major contracts during this period.
UK Mail currently has a 7% share of the UK postal market, handling around 17m items of mail each day. Pre-tax profit rose from £5.9m to £7m for the six months to the end of September, with revenues falling from £194.5m to £188m.
Guy Buswell, chief executive at UK Mail said that prices were similar to those being charged ten years previously and that there had been little change in volumes.
The news is in stark contrast to 2008 when UK Mail saw a 10% rise in profits in the first three months of 2008 - a 50% increase on 2007 figures. In April it had reported a 7% increase in revenues. The company is positive about its 'imail' service. Guy Buswell said.
"With the launch of imail we have created the first alternative to first class mail, providing a real choice to customers within the UK. imail represents an important part of our business strategy and will expand our mail business far beyond its existing offering." said Mr Buswell.
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