UKM.L Regulatory News (UKM)

21 Jan 2009 07:00

21 January 2009 

BUSINESS POST GROUP PLC

INTERIM MANAGEMENT STATEMENT

Business Post Group plc today issues the following Interim Management Statement covering the period 1 October 2008 to 31 December 2008.

Performance has continued in line with the Board's plans, and despite the difficult economic back drop, the Group is on track to deliver results for the year in line with expectations.

The Group has continued to grow revenues, which for the period increased by 3% on the equivalent period last year. 

Our Mail business, UK Mail, again achieved good double-digit growth, increasing our market share to 15%, through new business wins and the securing of further mail volumes from existing customers. As previously indicated, the rate of Mail revenue growth will moderate from the exceptionally high levels previously achieved. We welcomed the findings of the Independent Review Panel's report on the UK postal services sector, published on 16 December 2008, and we look forward to continuing our relationship with the more commercial Royal Mail that would result.

As expected, Parcel revenues showed a decline on the same period last year reflecting the current economic situation. Parcels operations over this period achieved high levels of efficiency as we continue to reduce our operating costs. These efficiency gains have compensated for the lower revenue we have experienced.

Revenues in Specialist Services for the period were up significantly on last year, driven by a continued strong improvement in our Courier business.

The Group's balance sheet remains very strong with negligible net borrowings.

Our plans continue to be based on moderate overall revenue growth combined with a strong focus on operational effectiveness to deliver increased profit.

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