Royal Mail Group H1 Revenue Up, Parcel Business Struggles
November 19, 2014 9:38 am
Royal Mail Group (RMG.L) the former state owned postal operator today announced H1 figures which reported an increase in H1 revenue however pre-tax profit was slightly down on the same period last year. The headline figure showed revenue up 2% for the 6 months to 28 September to £4.5bln. Pre tax profit fell to £218m from £233M last year.
The company was bolstered by better than expected performance in its letters business however stated that the parcels business remains challenging, despite higher parcel volume for the period revenue was down 1%. However the European side of the business GLS posted an improved revenue up 7%
Moya Greene, Chief Executive Officer, Royal Mail Group (RMG.L), said: “I am pleased with our overall performance. We have delivered two per cent revenue growth together with margin expansion, in line with our expectations. Our tight cost control meant that UK costs were flat on an underlying basis and we are expecting a similar performance for the full year. Looking further ahead, we are targeting a flat or better underlying UKPIL cost performance in 2015-16.
“The UK parcels market remains challenging. As the pre-eminent UK parcels delivery company, we are targeting a number of new, growing areas, and delivered two per cent volume growth in a competitive market. We had a better than expected performance in UK letters. GLS, our European parcels business, demonstrated a strong performance with better than expected volumes in domestic and export parcels.
“Our performance remains in line with our expectations for the full year. But, as always, this depends on us delivering another great Christmas, for which we are fully prepared.”
Royal Mail Group (RMG.L) the former state owned postal operator today announced H1 figures which reported an increase in H1 revenue however pre-tax profit was slightly down on the same period last year. The headline figure showed revenue up 2% for the 6 months to 28 September to £4.5bln. Pre tax profit fell to £218m from £233M last year.
The company was bolstered by better than expected performance in its letters business however stated that the parcels business remains challenging, despite higher parcel volume for the period revenue was down 1%. However the European side of the business GLS posted an improved revenue up 7%
Moya Greene, Chief Executive Officer, Royal Mail Group (RMG.L), said:
“I am pleased with our overall performance. We have delivered two per cent revenue growth together with margin expansion, in line with our expectations. Our tight cost control meant that UK costs were flat on an underlying basis and we are expecting a similar performance for the full year. Looking further ahead, we are targeting a flat or better underlying UKPIL cost performance in 2015-16.
“The UK parcels market remains challenging. As the pre-eminent UK parcels delivery company, we are targeting a number of new, growing areas, and delivered two per cent volume growth in
a competitive market. We had a better than expected performance in UK letters. GLS, our European parcels business, demonstrated a strong performance with better than expected volumes in domestic and export parcels.
“Our performance remains in line with our expectations for the full year. But, as always, this depends on us delivering another great Christmas, for which we are fully prepared.”
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