UKM.L Regulatory News (UKM)

8 April 2010

UK Mail Group plc

Pre-Close Trading Update

UK Mail Group plc today issues the following pre-close trading update for the year ended 31 March 2010.

The fourth quarter has seen solid progress, with Group revenues for the period increasing by some 2% year on year, leading to Group revenues for the full financial year being in line with the previous year.

Our Parcels business has continued to improve through the second half, increasing both revenue and market share, with continued pricing pressures more than offset by strong volume growth.

Our Mail business has also continued to grow its revenues, launch innovative new products and win new customers. We have very recently signed an important new contract with Royal Mail which will allow us to operate a packet collection and delivery service, utilising Royal Mail for final delivery. This will enable us to offer customers a price competitive service in the high growth packet sector of the postal market.

Specialist Services has shown further overall revenue growth, with our Pallets business showing an improving trend of performance and our Courier business continuing its strong growth through the second half.

As a result of this good trading performance, we are confident about the outcome for the full year.

UK Mail Group plc will report its preliminary results for the year ended 31 March 2010 on 19 May 2010.

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