27 November 2015/Categories: Industry News
UK Mail has reported a 55.5 per cent decline in operating profit to £4.9 million for the half year to September 30th.
The driving forces behind this trend are operating issues related to the company's relocation to a new hub at Ryton on the outskirts of Coventry.
In August, the company had confirmed that profits for the current year would be hit by problems at the new site.
Weaker gross margins were also cited as a contributing factor, in addition to the relocation-related impairment charges and costs.
Revenue rose to £237.6 million from £227.5 million for the half year, while parcels revenue rose by 5.3 per cent, backed by average daily volume growth of nine per cent.
Chief executive of UK Mail Guy Buswell said: "We are facing a number of challenges as a result of a combination of inefficiencies in the new hub and in our transport network."
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