UKM.L Regulatory News (UKM)

12th January 2016

UK Mail Group plc

Q3 TRADING UPDATE

"Good performance in Peak Christmas trading period"

UK Mail Group plc (the "Group") today issues the following update on trading covering the period 1 October 2015 to 31 December 2015.

Overall, the performance for the third quarter was in line with our expectations and therefore our expectations for the full year profit remain unchanged.

Our Parcels business delivered good volume growth of some 8% compared to the same period last year. Volume growth in the third quarter was again largely driven by an increase in internet shopping related home deliveries.

Our new automated hub operated very well throughout the peak period, and is starting to achieve good throughput levels. As a result our strong customer service levels were maintained throughout this very busy trading period.

Our Mail business achieved satisfactory volume growth, of some 2%, although due to mix effect revenues were down compared to the same period last year.

The Group remains in a sound financial position.

Peter Kane, Chairman of UK Mail, said:

"I am pleased to report that UK Mail has performed well during our peak Christmas trading period, maintaining our customer service levels even as volumes continued to increase. It is clear from weekly volume patterns that there are now effectively two peaks, one around the 'Black Friday' weekend in November and another in late December.

"Our new hub is now working effectively and delivering good service levels to our customers. We need to build on this base as we move forward into 2016. The key challenge is to drive the planned efficiency savings from the hub whilst further developing our customer offering."

UK Mail's results for the year to 31 March 2016 will be announced on 24th May 2016.

-Ends-

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.

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.