UK Mail revenues boosted by DM

UK Mail says third quarter revenues were boosted by an increase in companies sending direct mail and the postal strike.

The postal service, a rival to Royal Mail, says group revenues increased 4% in the three months to 31 December.

The company says an increase in mail drops, or "discretionary mailings", in the quarter helped grow its mail business, an area that had "suffered as a result of the economic downturn".

Guy Buswell, chief executive of UK Mail, told the BBC that strike action by Royal Mail staff in the period had had a positive impact on its business post division but had harmed other areas of its business.

UK Mail relies on the Royal Mail for deliveries, the so-called "final mile".

Buswell says "It's important to have Royal Mail in good shape. There's no doubt it was a disaster for both sides of the dispute, as the public lost confidence in the Royal Mail."

The company says it now expects profits for the year ended March 2010 will be "slightly ahead of previous expectations" because of its positive trading performance.