Royal Mail rival delivers success

A rival to Royal Mail said its postal operation had more doubled revenues after attracting new business, particularly in financial services.

Business Post also said it had invested a further £2.1m (€3.1m) in sorting machines as part of growth at its UK Mail division, which collects letters every night and sorts them before passing them on to Royal Mail for delivery.

The operation saw revenues rise 157% in the six months to September 30, while operating profits were up 136%.

The business handled its one billionth item of mail in September after new sorting centres opened in Runcorn, Edinburgh, Leeds, Birmingham, Greenford and Croydon this year. The company dealt with 88 million mail items in October.

Business Post said the strong performance at UK Mail, which it called the leading competitor to Royal Mail, offset problems at its parcel services business after a 35% drop in operating profits to £6.6m (€9.8m).