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London - UK Mail Group reported a 6% increase in first-quarter revenue, riding on a growing trend of cost-conscious Britons shopping online, sending shares in the parcel delivery company up 10%.
UK Mail, the country's largest independent parcels, mail and logistics services company, said underlying revenue rose 3 percent for the April 1 to June 30 period.
Daily volumes at its parcels business increased 25% during the first quarter, driven by home deliveries of goods bought online.
British consumers have increasingly been shopping on the internet, where prices are unencumbered by high-street overhead costs.
The surge in e-retailing more than doubled state-backed rival Royal Mail Group's annual profit earlier this year.
However, UK Mail said it expected the economic environment to remain challenging in the UK in the current year and pricing to remain competitive.
Investec Securities analyst John Lawson reiterated his "buy" rating on the stock, saying the company is well-positioned to gain further market share.
Revenue from the company's mail services business, which accounts for over half of the company's overall revenue, was slightly down.
UK Mail's shares were up 9.61% at 567.5 pence at 08:05 GMT on the London Stock Exchange on Tuesday.
