UKM.L Regulatory News (UKM)

9 July 2013

uk mail Group plc

INTERIM MANAGEMENT STATEMENT

"A good start to the current financial year"

UK Mail Group plc announces the following Interim Management Statement covering the period 1 April 2013 to 30 June 2013.

We have made a good start to the current financial year, with trading performance for the first quarter likely to be well ahead of our previous expectations.

Reported Group revenues for the first quarter increased by some 6% compared to the same period in the previous year. Adjusted for there being two extra working days in the period compared to the same period last year, the underlying revenue increase was some 3%.

Our Parcels business continued to deliver a strong performance, with daily volumes for the quarter increasing by some 25% compared to the same period last year. This volume growth was largely driven by an increase in home deliveries related to online shopping, which resulted in a continuation of the mix change towards B2C that we have previously disclosed. We expect the level of parcels volume growth to moderate going forward as we annualise the higher volume growth achieved from the second quarter of the last financial year.

In our Mail business revenues were down slightly, largely due to mix changes; volumes were ahead of the same period last year. Mail remains well positioned in its market with a good pipeline of new business opportunities.

Our Courier and Pallet businesses performed in line with expectations, with slight revenue declines on the same period in the previous year.

The Group remains in a sound financial position.

We continue to expect the terms of an agreement with HS2 for the relocation of our Birmingham hub to be confirmed shortly by the Secretary of State for Transport.

Notwithstanding a good start to the current financial year, we still assume that the UK economic backdrop will remain challenging in the current year and that the pricing environment will stay competitive. However, as our industry continues to evolve, we continue to be confident that we can use our inherent strengths to adapt to the opportunities and gain further market share.

The Group's Annual General Meeting will take place at 12.00pm tomorrow, 10 July.

The Group expects to issue a pre-close trading update for the half year ended 30 September 2013 in early October 2013.

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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 50 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.