City Link collapse raises UK Mail’s costsComments Off on City Link collapse raises UK Mail’s costs
City Link collapsed on Christmas Eve when it was put into administration by Jon Moulton’s Better Capital with the loss of 3000 jobs.
UK Mail said volumes for its final quarter to March 31 had been 12% higher, partly driven by winning new accounts as result of the collapse.
However, it also said this meant its parcel volumes were running above its normal operating capacity, which pushed up operating costs for the last three months.
That is likely to continue through the first half of the current financial year, but should be sorted out when it completes its move to a new hub near Coventry.
Chief executive Guy Buswell said: “We continue to see new opportunities to increase our share of the UK parcels market as a result of the improved competitive environment.”
The shares fell 16p to 469p.