Private postal rival picks up market share

The Slough-based company said its mail operation – which picks up and sorts post ahead of delivery by Royal Mail – said its market share had reached 15 per cent in the final three months of last year.

UK Mail – Business Post's division that sorts corporate letters – achieved the growth by winning new business and taking on more mail from existing customers, helping overall revenues for the quarter increase by 3 per cent compared with the previous year.

Revenues for specialist services also rose, driven by improved courier business, but fell for the group's parcels arm. Business Post blamed the current economic crisis but said increased efficiency as operating costs were cut compensated for the lower revenues. The company said: "Our plans continue to be based on moderate overall revenue growth combined with a strong improvement in our courier business."

Companies such as Business Post have been steadily growing as corporate customers turn their backs on Royal Mail following the liberalisation of the postal market.

In November, Business Post reported a 25 per cent rise in half-year profits, aided by the performance of UK Mail.

Business Post's shares were unchanged last night at 250p.