UKM.L Regulatory News (UKM)

13 July 2011

uk mail Group plc

AGM / INTERIM MANAGEMENT STATEMENT

At today's AGM, Peter Kane, Chairman of UK Mail Group plc, will announce the following Interim Management Statement covering the period 1 April 2011 to 12 July 2011.

"We have made a satisfactory start to the financial year, with trading performance in line with management expectations.

Reported Group revenues for the first quarter increased by some 5.5% compared to the same period in the previous year. Adjusting for one less working day than in the previous year as well as the increase in Royal Mail prices implemented on 6 May 2011, underlying Group revenues increased by some 4%.

Our Parcels revenues showed satisfactory growth on the previous year reflecting the benefit of recent customer wins, albeit in a pricing environment that remains challenging and with a continuation of the volume mix seen in the second half of last year.

Our Mail business continued to grow its revenues both on an absolute and an underlying basis. Mail remains in a good position with a strong pipeline of new business opportunities.

Our Courier business has continued its good revenue growth whilst our Pallets business has shown resilient performance in a market that continues to be challenging.

Economic conditions remain difficult but we continue to maintain our strong focus on driving efficiency and innovation to defend and increase our market share. The Group remains in a sound financial position."

The Group expects to issue a pre-close trading update for the half year ended 30 September 2011 in early October 2011.

- Ends -

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All financial information in this announcement is sourced from UK Mail's unaudited management accounts. Statements made in this announcement that look forward in time or that express UK Mail's management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect management's current expectations concerning future events and actual results may differ materially from current expectations or historical results.

Notes to Editors:

The UK Mail Group (formerly known as Business Post Group) is the largest independent parcels, mail and logistics services company within the UK, offering innovative delivery solutions both locally and worldwide. The Group has a national network of more than 52 sites and 2500 vehicles enabling it to offer business customers a unique integrated service with a full range of time-sensitive and secure delivery options for parcels, letters and pallets.