by UK Mail | Jan 13, 2015
PROPOSED CLOSURE OF PALLETS BUSINESS
UK Mail Group plc (“UK Mail” or the “Group”), provides the following update on trading in the three months to 31st December 2014.
Trading in our core businesses in the third quarter to 31st December 2014 has been in line with our expectations.
Our core businesses have performed well with our Parcels business successfully handling record volumes, and our network remaining robust, during the peak weeks running up to Christmas.
The demise of City Link is likely to have a positive impact on the overall UK parcels industry. We have taken on some volumes from ex-City Link customers but it will be some time before the longer term outcome, on our business and on the industry as a whole, can be properly assessed.
Our expectations for the full year outcome for our core businesses remain unchanged.
The construction and fit out of the new hub is on track for completion next week. The hub automation has been installed and is now entering a commission and testing phase ahead of implementation in May 2015.
UK Pallets Ltd
In our interim results statement we reported that our non-core subsidiary UK Pallets Ltd, having suffered declining profitability in recent years, was continuing to experience a number of challenges and that we were taking action to address this underperformance.
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