UK Mail profit buoyed by jump in parcel delivery volumes

Nov 20 (Reuters) - Parcel delivery company UK Mail Group Plc said pretax profit rose 63 percent in the first half as there were three extra working days in the period and higher deliveries of online purchases continued to drive growth.

The company, which provides parcels, mail and logistics services, said pretax profit rose to 11.9 million pounds ($19.2 million) in the first half ended Sept. 30 from 7.3 million pounds a year earlier.

Revenue rose 7.9 percent to 243.4 million pounds.

UK Mail (LSE: UKM.L - news) was the largest independent parcel and mail delivery company until Royal Mail Plc was privatised by the government in October.

The company said average daily volumes rose 25 percent in its parcels business largely due to higher home deliveries related to online shopping.

The company said the automation of its parcel business would be completed in early 2015 and expected the process to lead to double-digit net returns by September 2015.

UK Mail also raised its interim dividend to 7.1 pence from 6.4 pence a year earlier.

Shares in the Berkshire, England-headquartered company were up 5 percent at 614.5 pence at 0838 GMT in thin trade on the London Stock Exchange (Other OTC: LDNXF - news) .