TIDMRMG
RNS Number : 4383Y
Royal Mail PLC
24 January 2014
24 January 2014
ROYAL MAIL plc
INTERIM MANAGEMENT STATEMENT
Royal Mail plc (RMG.L) today issued the following Interim
Management Statement covering the financial position and trading
performance of the Group for the nine months ended 29 December 2013
and including the period from 30 September 2013 to date.
Moya Greene, Chief Executive Officer, Royal Mail plc, said:
"Our postmen and women have again delivered Christmas for the
UK. We were delighted to see that people continue to send seasonal
good wishes, with Christmas cards underpinning a like-for-like
increase in our December stamped mail volumes. We remained the
nation's number one parcel delivery company, handling 115 million
parcels in the month of December alone. That's significantly more
than any other carrier in the UK parcel market. GLS, our
ground-based European parcels business, has performed well and is
exploiting the growth opportunities in the Eurozone. Our financial
performance to date is in line with our expectations and gives us
confidence that we will deliver against our key value drivers for
the full year."
Trading performance for the nine months ended 29 December
2013
Group
-- Like-for-like revenue up 2%
-- Parcels accounted for 51% of revenue
UKPIL
-- Like-for-like revenue up 1%
-- Cost trends consistent with underlying performance in the first half
UK Parcels Like-for-like
Revenue 8%
Volumes flat
-- As expected, our size-based pricing approach has driven
significant growth in revenue, with parcel revenue up 8% on a
like-for-like basis in the nine months
-- Parcels accounted for 41% of UKPIL revenue, compared with 38% in the nine months last year
-- As anticipated, parcel volumes were flat. We saw good growth
in account parcel volumes, despite some customer reaction to
possible industrial action, and Parcelforce Worldwide grew
strongly. However, there were declines in consumer volumes,
including large uneconomic items that exited the core network
following the introduction of size-based pricing
-- Parcel volumes in the month of December were 115 million, a
like-for-like increase, peaking at over 10 million parcels
delivered on the busiest day. We handled significantly more parcels
than any other carrier in the UK parcel market
UK Letters Like-for-like
Revenue (3%)
Addressed letter volumes (5%)
-- Total letter revenue declined by 3% on a like-for-like basis,
compared with a 4% like-for-like decline in the first half, as the
year-on-year impact of the London 2012 philatelic sales in the
prior year has diminished
-- Addressed letter volumes declined by 5% on a like-for-like
basis, compared with a 6% like-for-like decline in the first half,
in line with our expected range of a 4%-6% decline. The improvement
in the decline in addressed letter volumes was partly due to high
levels of mailings from energy companies at the beginning of the
second half. There was also a like-for-like increase in stamped
mail volumes in December which included the impact of Christmas
cards
GLS Like-for-like
Revenue 6%
Volumes 5%
-- GLS performed well continuing the trends seen in the first
half, with good progress in Italy and the emerging European markets
and the turnaround in France continuing. However sub-contractor
rates in Germany continue to see upward pressure
Current trading and outlook
Overall, our trading and trends in the nine months ended 29
December 2013 and in the period from 30 September 2013 to date have
been in line with our expectations and the first half. As a result,
we expect these trends, including the revenue and volume trends in
UK parcels, to continue and have confidence that we will deliver
results consistent with our key value drivers for the full
year.
On 9 December 2013 we announced we had reached agreement in
principle with the CWU on an agenda for growth, industrial
stability and protections, including a three-year pay offer, and
confirming the Pensions Reform. The ballot to recommend the pay
agreement and confirming the Pensions Reform commenced on 22
January 2014 and runs until 5 February 2014.
No material events or transactions impacting the Group's
financial position have taken place during the period from 30
September 2013 to date save as disclosed in the Interim Financial
Report for the half year ended 29 September issued on 27 November
2013.
The results for the full year ending 30 March 2014 are expected
to be announced on Thursday 22 May 2014.
Notes:
1) Like-for-like means adjusted for working days in UKPIL and for foreign exchange movements in
GLS. There were approximately the same number of working days in
the nine months ended 29 December 2013 as there were in the same
period last year
2) To date means up to 23 January 2014, being the latest
practicable date prior to the publication of
this Interim Management Statement
3) The value drivers for the Group are as set out in Part VII
paragraph 5 of the Royal Mail plc Prospectus dated 27 September
2013
Enquiries:
Media Relations
Mish Tullar
Phone: 07423 524 154
Email: mish.tullar@royalmail.com
Beth Longcroft
Phone: 020 7449 8241
Email: beth.longcroft@royalmail.com
Royal Mail press office out of hours: 020 3338 1007
Investor Relations
Catherine Nash
Phone: 020 7449 8297
Email: investorrelations@royalmail.com
Disclaimer:
Figures presented in this Interim Management Statement are not
audited. This Interim Management Statement contains certain
statements that constitute "forward-looking statements". Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause the actual
results, performance or achievements of the Group or industry
results to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Persons receiving this release should
not place undue reliance on any forward-looking statements.
The Group disclaims any obligation or undertaking to update or
revise any forward-looking statements contained in this document to
reflect any change in its expectations or any change in events,
conditions or circumstances on which such statements are based
unless required to do so by applicable law, the Prospectus Rules,
the Listing Rules or the Disclosure and Transparency Rules of the
Financial Conduct Authority.
About Royal Mail plc:
Royal Mail plc is the parent company of Royal Mail Group
Limited, the leading provider of postal and delivery services in
the UK and the UK's designated universal postal service provider.
UK Parcels, International and Letters (UKPIL) comprises the
company's UK and international parcels and letters delivery
businesses operating under the "Royal Mail" and "Parcelforce
Worldwide" brands. Through the Royal Mail Core Network, the company
delivers a one-price-goes-anywhere service on a range of parcels
and letters products. Royal Mail has the capability to deliver to
more than 29 million addresses in the UK, six days a week
(excluding UK public holidays). Parcelforce Worldwide operates a
separate UK network which collects and delivers express parcels.
Royal Mail also owns General Logistics Systems (GLS) which operates
one of the largest ground-based, deferred parcel delivery networks
in Europe.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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