UKM.L Regulatory News (UKM)

8 January 2013

UK Mail Group plc

INTERIM MANAGEMENT STATEMENT

"Strong performance in peak Christmas trading period"

UK Mail Group plc (the "Group") today issues the following Interim Management Statement covering the period 1 October 2012 to 31 December 2012.

Overall, our sales and trading performance for the third quarter was above our previous expectations. Reported Group revenues for the quarter showed an increase of some 14% compared to the same period in the previous year. Adjusting for the increase in Royal Mail prices implemented on 2 April 2012 and there being one more working day than in the same period last year, underlying Group revenues increased by some 8%.

Our Parcels business delivered an improved trend in performance, with volumes increasing by some 20% compared to the same period last year. This volume growth was again partly driven by an increase in internet shopping related home deliveries, which resulted in a continuation of the mix change towards B2C that we saw in the first half. Working with our customers we sought to manage our peak Christmas volumes to ensure they were within our expanded capacity. Our operations were very well managed across the peak period, which ensured that our leading customer service levels were maintained throughout this very busy period.

Our Mail business again saw good revenue growth, due to a further increase in mail volumes. This growth continues to be driven by strong customer retention and new customer wins.

Our Courier business had a decline in revenues, as expected. Our Pallets business again achieved revenue growth, though with a continuation of the challenging operational conditions seen in the first half.

The Group remains in a sound financial position.

Guy Buswell, Chief Executive of UK Mail, said:

"I am pleased to announce that we performed well during our peak Christmas trading period, maintaining our strong customer service levels even as volumes significantly increased.

"We still assume the economic backdrop will remain challenging into 2013 and the pricing environment will stay competitive. We are well prepared for this and with our highly competitive business model, tight focus on costs and strong balance sheet, we remain confident that we will come through this period of significant change in our industry as one of the strongest players in the markets in which we operate."

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Notes to editors:

About UK Mail Group plc

UK Mail Group plc is the leading independent parcels, mail and logistics services company within the UK and one of the main alternatives to Royal Mail for business mail requirements.

Forward-looking statements

This announcement contains certain forward looking statements with respect to the financial condition, results of operations and businesses of UK Mail Group plc. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.

The information in this announcement is based on unaudited management accounts and is before any exceptional items.