Royal Mail PLC Q1 2015-16 Trading Update (5746T)
21 Juli 2015 - 8:00AM
UK Regulatory
TIDMRMG
RNS Number : 5746T
Royal Mail PLC
21 July 2015
Royal Mail plc
News Release
21 July 2015
ROYAL MAIL plc
TRADING UPDATE FOR THE THREE MONTHS ENDED
28 JUNE 2015
Royal Mail plc (RMG.L) today issued the following trading update
covering the three months ended 28 June 2015. Overall, trading in
the period was broadly in line with our expectations.
Moya Greene, Chief Executive Officer, Royal Mail plc, said:
"In the first three months of our financial year we have seen a
continuation of the overall market trends we saw last year. We have
benefitted from the parcel initiatives that took effect in the
second half of last year and a good performance from GLS. Our
trading environment remains challenging and we are stepping up the
pace of change to drive efficiency, growth and innovation, while
maintaining a tight focus on costs."
Trading performance for the three months ended 28 June 2015
Group Change(1)
Revenue flat
UKPIL Change(1)
Revenue (2)%
-- UKPIL revenue was down 2%, with parcel revenue up 2% but letter revenue down 4%.
UK Parcels Change(1)
Volumes 3%
Revenue 2%
-- Parcel performance in part reflects a relatively weak comparative period last year.
-- Parcel volumes were up 3%, supported by continued growth in
low AUR import parcels and a 20% increase in Parcelforce Worldwide,
our smaller express parcels unit. In account parcels, we benefitted
from the initiatives that took effect in the second half of last
year. We successfully targeted new sectors of the market and
benefitted from opening our network later and at the weekend.
-- Parcel revenue was up 2% due to the pricing environment which
remains very competitive in all the major segments, in particular
Parcelforce Worldwide and export parcels.
UK Letters Change(1)
Addressed letter volumes (5)%
Revenue (4)%
-- Addressed letter volumes decreased by 5% (excluding the
impact of election mailings), within our forecast range of a 4-6%
decline per annum.
-- Total letter revenue was down 4%. We benefitted from election
mailings revenue in both this period and the same period last year.
We have seen some evidence of downtrading as well as declines in
the higher AUR products which have partially offset the impact of
letter price increases which came into effect in January and
March.
GLS Change(1)
Volumes 9%
Revenue 8%
-- GLS performed better than expected, largely driven by a
continued good performance in Italy and a better performance in
Germany.
-- We are monitoring how the market is reacting to the change in
German minimum wage legislation and continue to expect that GLS
margins could be impacted by around 50-100 basis points this
year.
Outlook
Our outlook for letter and parcel trends and other guidance
remain unchanged from that set out in our Financial Report for the
full year ended 29 March 2015 issued on 21 May 2015. In particular,
we remain focused on costs and continue to target flat or better
UKPIL underlying costs for 2015-16. As in previous years, our
performance will be weighted to the second half and will be
dependent on our important Christmas period.
The results for the half year ending 27 September 2015 are
expected to be announced on Thursday 19 November 2015.
Note:
1. Movements in volume and revenue are on an underlying basis,
unless otherwise stated. Underlying movements are calculated after
adjusting for foreign exchange movements in GLS' revenue (excluding
DPD SL) and working days in UKPIL revenue, as well as any
non-recurring or distorting items that have impacted the reporting
periods. For volumes, underlying movements are adjusted for working
days in UKPIL. There was the same number of working days in the
first three months of 2015-16 compared with the same period last
year. For comparison purposes all underlying adjustments are made
to the prior period.
Enquiries:
Investor Relations
Catherine Nash
Phone: 020 7449 8297
Email: investorrelations@royalmail.com
Media Relations
Mish Tullar
Phone: 07423 524 154
Email: mish.tullar@royalmail.com
Royal Mail press office out of hours: 020 3338 1007
Disclaimer:
Figures presented in this trading update are not audited. This
trading update 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 & 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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