Rise in junk mail helps to lift sales for company

UK Mail said group sales for the three months to December 31 were four per cent higher than the same period last year, helped by growth in both its mail and parcels businesses.

The firm, which has large-scale postal clients customers such as banks and utility firms, said it had benefited from a rise in marketing mailing that had fallen off in the depths of the recession.

A spokesman for the firm said that while it did not make up a large proportion of UK Mail's business, the improvement was a welcome trend.

Revenues had started to pick up from discretionary mail – or junk mail – after it took "a major hit".

The firm saw a mixed impact from strike action by Royal Mail workers during the quarter.

It relies upon Royal Mail delivery staff for its mail deliveries, despite being a competitor.

But its parcel service did benefit from the upheaval as people who would have used the postal system to send packages turned to specialist delivery firms.

Its parcel business returned to revenues growth in the quarter – the first year-on-year improvement for the division for over a year – although volume growth was partly offset by continued pricing pressure.

The Birmingham-based company said it now expects profits for the year to the end of March to be slightly ahead of previous expectations.