Shares in private courier service UK Mail Group (LON:UKM) dropped more than 10 percent today, as company restructuring and movement of its head office to a new location takes its toll on finances.

The group disclosed revenues of £237.6 million, up 4.5% on the previous year, but profit before tax fell 55.5 percent to £4.9 million.

The company are in the midst of a period of major investment and transition, after competing the movement of their head office to a new space in Ryton in July this year. In a statement the group said that the move will “deliver significant long term opportunities but was always expected to be challenging in the short-term.”

Guy Buswell, chief executive officer of UK Mail, commented:

“It has become clear that the near-term challenges associated with the transition have been more significant than first anticipated.

“Trading in the initial weeks of the second half, and overall trends within our individual businesses, have been in line with our revised expectations. Our expectations for the current year therefore remain in line with previous guidance. However, due to the timescales required to fully resolve the challenges, our expectations for the next financial year have softened slightly.”

UK Mail are currently trading down 10.19 pence at 326.90 pence per share, after hitting a 52 week low of 300 pence earlier today.

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