UK Mail Group has recorded a 4% turnover rise in Q1 despite having to soak up Royal Mail price hikes.
The delivery giant says that in adjusting for a rise in Royal Mail prices implemented on 6 May, as well as one less working day as a result of the Royal Wedding, its sales rose 4% between 1 April and 12 July, compared to the same period in 2010.
A number of undisclosed contract wins helped the company to maintain what it describes as satisfactory growth in its parcel division during the first quarter, however the firm admits that the pricing environment remains challenging.
Meanwhile its pallet network division UK Pallets showed a "resilient performance in a market that continues to be challenging", according to UK Mail chairman Peter Kane.
Kane says in the firm's interim management statement: "Economic conditions remain difficult, but we continue to maintain our strong focus on driving efficiency and innovation to defend and increase our market share. The group remains in a sound financial position."
In May UK Mail revealed it was now subject to a
new pricing regime from Royal Mail to give the firm access to its network.
