LONDON--Royal Mail PLC (RMG.LN) Thursday reported a 19% rise in
fiscal 2014 pretax profit, declared its first dividend of 13.3
pence, and said its objective of single digit revenue growth for
fiscal 2015 remains.
The FTSE 100-listed postal firm said the rise in profit was due
to parcel revenue growth more than offsetting letter volume
declines.
For the year ended March 30 Royal Mail made a pretax profit of
363 million pounds ($612.18 million), compared with GBP304 million
a year earlier. Stripping out exceptional costs, mainly due to its
pension plan amendment, it made an adjusted pretax profit of
GBP1.67 billion, compared with GBP283 million. Revenue rose 2% to
GBP9.46 billion.
"We are facing a couple of headwinds. The competitive
environment on the parcels side is more intense. We are taking
steps to remain the leader in this growing market," Chief Executive
Officer Moya Greene said.
"Our key value drivers of single digit revenue growth, margin
expansion and underlying free cash flow growth remain the
objectives for the Group for the 2014-15 financial year", she
added.
In March the recently-listed U.K. postal service, announced
plans to eliminate 1,300 jobs as part of a new plan to save GBP50
million a year, but said no front-line postal workers would be
affected.
Last October, the U.K. sold a 60% stake in the Royal Mail whose
history dates back to 1516, when King Henry VIII ordered the
creation of the first national post service.
But in recent years the company has battled the rise of the
Internet and email, leading to losses in five of the last 12 years
and the elimination of more than 50,000 jobs. It now handles about
58 million letters and parcels a day, down from 84 million five
years ago.
Shares closed Wednesday at 575 pence, valuing the company at
GBP5.75 billion.
-Write to Ian Walker at ian.walker@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires