Trying to pick a company with turn around potential in the share price.
With the share price still close to long-term support 275p,UK Mail
looks quite capable of delivering some welcome portfolio profits.




https://www.ukmail.com/


The UK Mail Group (formerly known as Business Post Group) is the largest independent parcels, mail and logistics services company within the UK, offering innovative delivery solutions both locally and worldwide.


Over the past 40 years we have built up a business offering that we believe is second to none. With a national network of more than 55 sites and 2500 vehicles we are able to offer business customers an unique integrated service with a full range of time-sensitive and secure delivery options for parcels, letters and pallets – all of which can be tailored specifically to meet the needs of your business.

Over the past 40 years we have built up a business offering that we believe is second to none and our loyal customers now range from multinationals such as 02 and Talk Talk to family run businesses like Northamptonshire based Podington Garden Centre.

A dynamic and forward thinking company, UK Mail is committed to pushing the boundaries of the postal and express parcel delivery markets and continues to launch a range of innovative delivery solutions.

Upset somewhat with the Royal mail privatisation , recovered 5% today.

Pre-close Trading Update

RNS


RNS Number : 7874O

UK Mail Group PLC

25 September 2013






25 September 2013







uk mail Group plc



PRE-CLOSE TRADING UPDATE



"A Good First Half Trading Performance"



UK Mail Group plc today issues the following pre-close trading update for the half year ending 30 September 2013.



Current trading and outlook

Overall the Group performed well during the first half of the financial year. Trading in the second quarter has been such that overall performance for the first half year is now expected to be ahead of our previous expectations.



Reported Group revenues for the first half are expected to show an increase in some 7% compared to the same period in the previous year. Adjusted for there being three extra working days in the period compared to the equivalent period last year, the underlying revenue increase was some 4%.



Our Parcels business continued to deliver a strong performance, with average daily volumes for the half increasing by some 25% compared to the same period last year. This volume growth was largely driven by an increase in home deliveries related to online shopping, which resulted in a continuation of the mix change towards B2C that we have previously disclosed. We expect the level of parcels volume growth to moderate in the second half as we annualise the higher volume growth achieved from the end of the second quarter of the last financial year.



In our Mail business revenues were down slightly, largely due to mix changes, with our average daily mail volumes some 2% ahead of the same period last year. Mail remains well positioned in its market with a good pipeline of new business opportunities.



Our Courier and Pallet businesses performed in line with expectations, with slight revenue declines on the same period in the previous year.



The Group remains in a sound financial position.



Whilst we remain cautious about the strength of the economic recovery in the UK, the markets in which we operate continue to provide us with opportunities to develop and grow our business.



The Group will report its interim results for the half year ended 30 September 2013 on 20 November 2013.



HS2 discussions

We continue to make progress with securing an agreement with HS2 for the relocation of our Birmingham hub and expect confirmation by the Secretary of State for Transport to be received shortly. We hope to be in a position to provide a full update on our plans at the time of our interim results.







- Ends -

25 Sep Investec 630.00 Buy

Shares today -


Online shopping boosts UK Mail volumes


A surge in first-half volumes at UK Mail’s (UKM) parcels division has prompted the mail and logistics services company to say that first-half results will beat expectations. This triggers a 3.5% rise to 590p.

UK Mail says interim results, to be published on 20 November, should show a 7% rise year-on-year. Underlying revenue gain is 4% if you adjust for three extra working days in this year’s period.

Parcels is the strong area. Average daily volumes increased by some 25% compared to the same period last year thanks to an increase in home deliveries related to online shopping.

Mail revenues were down slightly and the group put this down to mix changes as daily mail volumes continue to grow – albeit by only 2%. The courier and pallet businesses performed in line with expectations, with slight revenue declines on the same period in the previous year.

While the group remains cautious about the depth of the UK’s economic recovery, UK Mail says its markets continue to provide opportunities to develop and grow business.

Stockbroker Investec raises its price target on UK Mail from 600p to 630p with analyst John Lawson characterising the company as being ‘in a sweet spot…with strong demand and enough capacity for now.’

Investec nevertheless flag up concerns about the rise in parcel volumes coming from an increase in home deliveries related to online shopping where B2C (business to consumer) traffic ‘has modest negative implications for the yield’. That notwithstanding, the broker is confident that the uplift from growth in volumes will more than mitigate for any likely margin erosion.

Interims on Wed 20 Nov

Half Yearly Report

RNS


RNS Number : 4605T

UK Mail Group PLC

20 November 2013










20th November 2013



UK MAIL GROUP plc



INTERIM RESULTS

For the 6 months ended 30 September 2013



Highlights



· Group revenues up 7.9%; group operating profit up 63.2%

o Parcels: revenues up 21.4%; operating profit up 91.3%

o Mail: revenues down 0.3%; operating profit up 10.9%



· Group profit before tax up 63.0% to £11.9m (2012: £7.3m)



· Strong balance sheet, net cash at period end of £19.5m (2012: £15.7m)



· Interim dividend increased by 10.93% to 7.1p per share (2012: 6.4p)



· Strong levels of customer retention and new client wins



· Further growth in market share as competitive and market landscape evolves



· New products and service offerings, including imail and ipostparcels, continue to make good progress



· Plans progressing for relocation of Birmingham hub and increased automation



Guy Buswell, Chief Executive Officer of UK Mail, said:-



"This has been a period of very strong growth, driven particularly by strong increases in our parcels volumes. Trading to date in the second half has been in line with our expectations and we remain confident of a positive outcome for the full year.



"This strong performance reflects the excellent progress made over the past three years. We have created a robust operational platform, strong competitive market positions, and we are a much more consumer-focused business.



"We are now entering the next phase of strategic investment. With significant steps forward planned over the next two years in our capacity, customer-facing technology, I.T. infrastructure and automation, these investments will create the platform for the next chapter of growth for the Group over the coming years

UK Mail shares lifted as parcels business boosted by online shoppers
By Giles Gwinnett November 20 2013, 10:42am Growth was supported by average daily volume growth of 25%-largely driven by an increase in home deliveries, the company saidGrowth was supported by average daily volume growth of 25%-largely driven by an increase in home deliveries, the company said

Home deliveries from online shopping boosted the parcels business of UK Mail (LON:UKM) in its latest half year, it told investors.

The parcels business, which represents 43% of the group's overall revenues, saw revenue growth of 21.4% in the six months to end September compared to last year.

This growth was supported by average daily volume growth of 25%-largely driven by an increase in home deliveries, the company said.

The firm provides mail, parcels and logistics services; in the mail business, revenues fell 0.3% but operating profit was up 10.9%.

Overall, the group's pre-tax profit increased 63% to £11.9 million, compared to £7.3mln in 2012.

Guy Buswell, UK Mail's chief executive, said: "This has been a period of very strong growth, driven particularly by strong increases in our parcels volumes.

"Trading to date in the second half has been in line with our expectations and we remain confident of a positive outcome for the full year."

He added: "We are now entering the next phase of strategic investment. With significant steps forward planned over the next two years in our capacity, customer-facing technology, IT infrastructure and automation, these investments will create the platform for the next chapter of growth for the group over the coming years."

UK Mail now has Royal Mail (LON:RMG) as a listed competitor after the state postal service was privatised last month, in a much hailed public float. Its parcel business is crucial to Royal Mail's future growth prospects.

UK Mail said it was continuing with plans to introduce further automated sortation at a cost of around £20mln this and next financial year into its parcels operations.

"We are targeting a double digit net return on the investment we make. We expect the automated sortation to go live in early 2015 with the full run rate of benefits being achieved from September 2015," it told investors today.

UK Mail declared an interim dividend payment of 7.1p - an increase of 10.9% (2012: 6.4p), to be paid on January 17 next year.

Shares advanced 6.84% to stand at 625p each.

Sp fully valued.

Agreement with Department for Transport

RNS


RNS Number : 8636U

UK Mail Group PLC

06 December 2013








6 December 2013



UK Mail Group Plc



Agreement with Department for Transport - relocation of central hub



UK Mail Group plc ("UK Mail") is pleased to confirm that agreement has been reached with the Department for Transport for the relocation of our central hub.



As indicated in our interim results announcement on 20th November 2013, our central hub in Birmingham is on the route of HS2 (the UK Government's planned high-speed rail route between London and the Midlands and Northern England) and therefore needs to be relocated.



An agreement has now been reached with the Department for Transport that they will support the relocation of the hub to a new 200,000 sq. ft. facility, in the Coventry area, subject to planning approval.



Construction is scheduled to commence in early 2014 and the move will take place over a period commencing in Spring 2015. This timescale supports our plans to introduce significantly increased automation of our operations from Spring 2015 onwards, with new automated sortation equipment being installed at the new hub.



The cost of replacing our existing facility and associated relocation costs will be funded by HS2 Ltd. UK Mail will fund the costs of deemed upgrades to our existing facility, expected to be some £10m; this is in addition to the previously announced investment of approximately £20m in the new automated sortation equipment. Of this combined investment, £10m is expected to fall into the current financial year and £20m into the year to 31 March 2015. The investment will be funded from UK Mail's existing cash resources and new bank facilities. We continue to expect a double digit net return on the investment in automation, with the full run-rate of benefits expected from September 2015.



Guy Buswell, CEO of UK Mail, said:



"This move will represent an important component of our plans to develop UK Mail into one of the leading and most advanced parcel carriers in the UK, with a new state-of-the-art, highly automated hub at the heart of our network."



Beth West, HS2 Ltd Commercial Director, said:



"We are pleased to have reached this agreement with UK Mail. This is a significant step forward and provides clear evidence that HS2 Ltd can work successfully with businesses to secure long term benefits for both."

The company must of done well over the Christmas period delivering what was ordered over the internet . From the company site - Q3 Management Statement January 2014

UK Mail Group: Investec ups target price from 630p to 700p and maintains a buy recommendation.

Pre-close Trading Update

RNS


RNS Number : 3766E

UK Mail Group PLC

09 April 2014








9 April 2014

UK Mail Group plc



PRE-CLOSE TRADING UPDATE



Good performance in fourth quarter



UK Mail Group plc (the "Group") today issues the following pre-close trading update for the financial year ended 31 March 2014.



Overall performance for the fourth quarter and the full year is expected to be in line with our previous expectations.



Reported Group revenues for the quarter are expected to show an increase of some 6% compared to the same period in the previous year, giving total reported revenue growth for the financial year of some 7%. There being one more working day than in the same period last year, underlying Group revenues for the quarter are expected to show an increase of some 4%, giving a total underlying revenue increase for the year of about 5%.



Our Parcels business continued to deliver a good performance, with volumes for the quarter increasing by around 15% compared to the same period last year. This volume growth was again partly driven by an increase in home deliveries related to online shopping, with a continuation of the mix change towards B2C that we have previously seen.



Our Mail business achieved revenue growth due to a further good increase in mail volumes. This growth continues to be driven by strong customer retention and business wins.



Our Courier business saw a good increase in revenues, reflecting a number of new contract gains.



Revenues in our Pallets business also showed an increase as the business continues with its recovery plan.



The Group remains in a sound financial position.



Guy Buswell, Chief Executive of UK Mail, said: "Our business has continued to perform well with good volume growth in both our parcels and mail businesses, showing the strength of our customer offering. Meanwhile our new one hour delivery window project has been implemented and is being rolled out across our network, enabling us to provide our customers with industry leading services in this key area.



We are making good progress with strategic investment in our business. Our new central sortation hub near Coventry is under construction, and is currently on track to be operational in mid 2015. Once completed this new facility will provide us with a strong platform for further volume growth and future operating efficiencies.



As expected, the coming year will be something of a transitional period for the Group, reflecting the current programme of investment, but our outlook for our trading performance is unchanged."



UK Mail Group will report its final results for the year ended 31 March 2014 on 21 May 2014.





- Ends -

Shares - Next weeks 21 May Finals should confirm ongoing strong performance in the groups parcel division as its shift towards B2C comes into focus.

Final Results



Highlights



· Group revenues up 7.0% to £508.5m (2013: £475.4m)

o Mail revenues up 1.5% to £245.3m (2013: £241.6m)

o Parcels revenues up 16.2% to £219.9m (2013: £189.3m)



· Group profit before tax up 28.2% to £22.8m (2013: £17.8m)



· Strong balance sheet, net cash at year end of £27.0m (2013: £27.0m)



· Final dividend increased 14.5% to 14.2p per share (2013: 12.4p), giving a total dividend increase for the year of 13.3% to 21.3p (2013: 18.8p)



· Strong levels of customer retention and new client wins



· New Hub and automation projects progressing well



· Good progress with new product and service offering, including imail and ipostparcels



· New scanning software being rolled out to all sites providing one hour delivery windows


http://www.moneyam.com/action/news/showArticle?id=4814988

Sharecast -Investec has raised its forecasts on UK Mail after the expanding parcel carrier said higher package and mail revenues helped it to lift annual profits and dividends.

The broker increased its pre-tax profit prediction for 2014/15 by 3% to £24m and its earnings per share forecast to 34.6p from 33.5p.

It also confirmed its 'buy' advice with a cashflow-based target price of 700p.

Investec said: "UK Mail continues to innovate and recent improvements in its IT infrastructure put the group as one of the 'best in class', we believe.

"The significant capacity expansion should facilitate the next leg of growth."

UK Mail Chief celebrates results with share purchase

Fri, 23 May 2014


The Chief Executive Officer of UK Mail this week celebrated a strong set of results by the mail and parcel courier with the purchase of 75,000 pounds-worth of shares.

Guy Buswell bought 12,195 shares at 615p each, taking his stake in the group to 267,807.

UK Mail's parcel business, which makes up 43% of its revenue, lifted revenue by 16.2% to £219.9m and operating profit by 37.2% to £22.4m as home deliveries related to online shopping partly drove increased volumes.

Its mail business, which contributes 48% of group revenue, increased revenue by 1.5% as it managed to keep customers and win contracts.

Mail volumes increased 2% against a year ago in comparison with an overall declining market as the group beat rivals such as Royal Mail to new work.

Investec raised its forecasts on the group, increasing its pre-tax profit prediction for 2014/15 by 3% to £24m and its earnings per share forecast to 34.6p from 33.5p.

It also confirmed its 'buy' advice with a cashflow-based target price of 700p.

UK Mail Finance and Operations Directors build stakes

Mon, 09 June 2014



The Group Finance Director and Group Operations Director of UK Mail have both upped their company holdings with the purchase of 4,000 shares each.

Both Steven Glew and Carl Moore spent 627p a share, giving each of the deals a trade value of £25,080.

The transactions come just a few weeks after the mail and parcel courier to deliver higher annual profits and dividends.

Group pre-tax profit rose 28.2% to £22.8m on a 7% lift in revenue to £508.5m.

It increased the final dividend by 14.5% to 14.2p per share, giving a total annual dividend increase of 13.3% to 21.3p.

The results prompted Investec to raise its pre-tax profit prediction for 2014/15 by 3% to £24m and its earnings per share forecast to 34.6p from 33.5p.

Glew's stake in the company now stands at 125,263 shares, while Moore holds 5,177.

Interim Management Statement

RNS


RNS Number : 7142L

UK Mail Group PLC

09 July 2014






9 July 2014





uk mail Group plc



INTERIM MANAGEMENT STATEMENT



"A solid start to the current financial year"



UK Mail Group plc announces the following Interim Management Statement covering the period 1 April 2014 to 30 June 2014.



We have made a solid start to the current financial year, with overall performance for the first quarter in line with our previous expectations.



Reported Group revenues for the first quarter increased by some 2.5% compared to the same period in the previous year. Adjusted for there being one less working day in the period compared to the same period last year, the underlying revenue increase was some 4.5%.



Our Parcels business continued to deliver a good performance, with daily volumes for the quarter increasing by some 10% compared to the same period last year. This volume growth was partly driven by an increase in home deliveries related to online shopping, with a continuation of the mix change towards B2C, as previously guided. We expect that the level of parcels volume growth will continue to moderate going forward as we annualise the higher volume growth achieved during the last financial year, reflecting the partial and temporary capacity constraints that we have previously disclosed, as we develop our new expanded and automated hub.



In our Mail business daily volumes were slightly up on the same period last year. Our Mail business has recently won a number of new tenders which we expect will lead to good volume growth for the remainder of the financial year.



Our Courier and Pallet businesses showed revenue increases compared to the same period in the previous year.



The Group remains in a sound financial position.



Our strategic investments are progressing to plan. Our new automated hub is on track to be operational from May 2015, providing a significant step forward in how we operate; creating extra capacity and reducing operating costs. Our key objectives during the relocation process will be to retain the knowledge and experience of our teams while maintaining our high levels of customer service. Good progress is being made and we are on track to achieve our objectives in this key area.



With the strength of our market position, a well invested, integrated and automated network, and a growing suite of innovations and industry-leading products and services, we remain excited about the medium term growth prospects for UK Mail.



The Group's Annual General Meeting will take place at 12.00pm today, 9 July.



The Group expects to issue a pre-close trading update for the half year ended 30 September 2014 in early October 2014.



- Ends -

9 Jul Investec 700.00 Buy

By John Ficenec, Questor editor

6:00AM BST 10 Jul 2014


UK Mail
592¼p-1
Questor says HOLD


UK MAIL said yesterday that a strong increase in parcel deliveries had supported earnings but Questor argues investors should wait a little longer before cashing in.


The delivery group said online retail had once again boosted parcel delivery volumes by 10pc during the first


quarter compared to the same period last year.


First quarter revenue increased by 2.5pc. Once adjusted for the loss of three days trading this year, underlying revenue increased by 4.5pc.


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Trading was in line with market expectations. Full-year, pre-tax profits are now expected to be 8pc higher at £24.5m, giving earnings per share of 34.9p, increasing to 38.2p next year.

The company warned that the increase in the volume of parcels would slow throughout the year when compared to the rapid growth last year. The first quarter volumes grew by 10pc, down from 19pc growth the company reported last year.

This is significant because parcels contributed about 60pc of the group’s profits and about 40pc of the revenue in the annual results last year.

The age of the internet was supposed to be the death of traditional letter delivery operations as email replaced what disparagingly became known as “snail mail”. However, as increasing numbers of people shop online, the internet has provided UK Mail with its fastest growing business.

Traditional mail delivery is undoubtedly in structural decline but UK Mail has bucked the trend, enjoying volumes that it said were “slightly up” on the same period last year.

Shares in UK Mail have more than doubled in value from around 250p a year ago.

The forecast dividend on the shares is 34.9p, which offers a yield of 3.9pc. The dividend is covered 1.5 times by earnings and free cash flow.

The balance sheet is also strong, with around £27m in net cash reported at the year end. This is impressive, considering the group is investing £20m in a new automated sorting system to increase efficiency.

This means investment that is expected to take place over the next two years will be funded by the company’s own cash. The site is due to be operational in May 2015.

UK Mail is a growth company but, with the shares trading on 17 times forecast 2014 earnings and growth slowing, they remain a hold.