UK Mail Group has reported enduring a "challenging" part of the year, with parcels volumes below expectations.

This decline in volumes was particularly steep in the latter part of the second quarter, the organisation said. 

The difficulties encountered in Q2 followed good revenue performance in the first quarter and the group says the half-year figures are expected to be broadly in line with our previous expectations.

In a statement, the company said: "The level of parcels volume growth has continued to moderate as we annualise the higher volume growth achieved during the last financial year."

Revenues in the firm's mail business are expected to decline by six per cent due to mix changes, with average daily volumes some two per cent ahead of the same period last year.

A "satisfactory" revenue increase is anticipated in the company's courier business, while pallets business revenues are expected to be broadly in line with last year.