U.K. Mail profit up on cost cuts in parcels unit

[POSTMAN]

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LONDON-- U.K. Mail Group PLC (UKM.LN) Thursday reported a rise in interim pretax profit despite lower revenue as it benefit from reduced costs in its parcels business.

The U.K. delivery group, which earlier this year agreed to be bought by Deutsche Post AG (DPW.XE) for 242.7 million pounds ($300.1 million), reported a pretax profit of GBP5.8 million for the six months ended September 30, up from GBP2.2 million the previous year, on revenue down to GBP230.2 million from GBP237.6 million.

The dividend is maintained at 5.5 pence.

"Given this positive momentum in our business, we are confident heading into our peak trading period," said chairman Peter Kane.


"However, the Board believes that U.K. Mail will benefit significantly from becoming part of Deutsche Post DHL, and will be better positioned to continue to develop our parcels and mail businesses with the benefit of their greater financial and operational resources," he added.