City Link collapse boosts UK Mail business

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UK Mail Group, which is moving to a new regional head office in Coventry, has revealed its parcels business has been boosted by 12 per cent in the first months of 2015 following the collapse of City Link.

In a pre-close trading update for the year to 31 March, the company also revealed that revenues are expected to increase by 5 per cent during the final quarter of its financial year, bringing sales for the year up by 1 per cent.

The figures exclude the group's pallet business after announcing its closure in January.

Guy Buswell, UK Mail chief executive, said: "We continue to see new opportunities to increase our share of the UK parcels market as a result of the improved competitive environment. The medium and long term outlook for the group therefore remains very positive."

Buswell added that the group was undergoing a "period of significant investment and transition" to become a "leading player" in the market.

"To date this transition is proceeding according to plan, although we have much to do in the first half of the new financial year to complete this key process," he said.

The updates also revealed the company's head office in Ryton has been completed on time, with the relocation of staff underway. Its move to the automated hub on the site will begin in May and will be completed by July.

UK Mail announced it would relocate from Birmingham to Coventry in January 2014.