Impressively, UK Mail’s (UKM) hefty jump in first-half profits wasn't down to one-offs or exceptionals - but just good, solid trading. The main driver was a robust showing in the parcels business, which generates 43 per cent of group revenues. Parcels saw average daily volume growth of 25 per cent, as the nation continued its love affair with online shopping.
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Solid revenue growth for parcels was magnified at the profit line with a 91 per cent jump in cash profits to £11.1m, thanks to an improved operating margin. Chief executive Guy Buswell says this was due to the fact that a lot of the costs of the business are fixed so, when volumes jump, "a lot falls to the bottom line."