UKM.L Regulatory News (UKM)

6 October 2015

uk mail Group plc

PRE-CLOSE TRADING UPDATE

UK Mail Group plc today issues the following pre-close trading update for the half year ending 30 September 2015.

Overall Group performance is in line with our revised expectations, which take account of the near-term challenges outlined in our trading statement of 7 August 2015.

Reported Group revenues (for continuing operations) for the first half increased by some 4% compared with the same period in the previous year.

In our Parcels business, average daily volumes for the first half increased by some 8% compared to the same period last year. We are now achieving improved rates of parcels volumes growth. This increase continues to be weighted towards B2C customers, related to the growth in online shopping.

In our Mail business, average daily mail volumes were some 8% ahead of the same period last year. The Group has recently won a number of major contracts and has a good pipeline of new opportunities.

Guy Buswell, Chief Executive Officer of UK Mail, said:

"We are focused on executing the plan we have put in place to address the recent challenges associated with our Parcels business. Progress to date has been encouraging and an update on this will be provided at the interim results in November.

 "We remain confident in our medium and long term prospects and in the operational benefits that our new fully-automated hub will bring, with a number of significant new customers keen to use our services as a result of this investment."

The Group intends to report its interim results for the half year ended 30 September 2015 on 18 November 2015.

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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:

About UK Mail Group plc

UK Mail Group plc is one of 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. More information is available at www.ukmail.com

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.