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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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UK Mail - Parcels increase profits 37%

July 2014

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • UKM
  • Price:
  • 620p
UK Mail released excellent results in line with expectations with revenues rising 7% to £508.5m and pretax profit increasing 28% to £22.8m. Eps rose almost 30% to 31.9p while net cash was £27m (2013: £27m). The key driver was its parcels division, which increased turnover 16% to £220m while profits rose 37% to £22.4m. The operational gearing benefits from high fixed costs and automation meant operating margins rose a sharp 1.6% to 10.2% in spite of a continued competitive pricing environment. The performance was put down to good customer retention and several high quality customer wins with trends towards greater online shopping also an important factor. Within the Mail division, revenues rose 1.5% to £245m while profits in ...

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Related Articles

UK Mail (November 2014)
UK Mail - Parcel delivery business boosted by surge in online shopping (February 2014)
UK Mail - Booming online commerce driving rapid growth in parcels division (November 2013)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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