https://www.myroyalmail.com/news/2017/0 ... ts-2016-17
We have announced our results for the year ended 26 March 2017.
Group profit of £712m*, down 6%**
UK profit of £548m*, down 11%
Addressed letter volumes down 6%,excluding election mailings, and money we earn from letters down 5%
UK parcel volumes, and money we earn from parcels, up 3%
For three years in a row, the money we earn from parcels in the UK has not made up for the fall in the money we make from letters.
We are continuing to invest in our business. In 2016-17, the company invested £492m (net) and will invest around £800m in the UK business in the next two years.
Our CEO, Moya Greene, said: ‘We have made good progress against all of our strategic priorities. This has been a more challenging period for UK businesses and we have come through it well.
‘Our multi-year focus on costs is a key priority. We are on track to avoid around £600m of annualised costs in UKPIL by 2017-18. We are past the peak of investment; we now expect net cash investment of around £450m in 2017-18.
‘GLS is performing well and is growing revenue organically and through acquisitions. Its deep expertise and focus on parcels positions it to be a force for growth for the company. We will continue to invest in careful and focused international expansion by GLS.
‘Through a combination of our strategic approach to costs and more efficient investment spend, we will support our progressive dividend policy with the in-year trading cash generation of the Group.’
We continue to expect a 4-6% annual decline in addressed letter volumes and expect this could be to the higher end of decline in 2017-18 if business uncertainty continues in the UK. We are responding to the challenging environment.
The full financial report can be viewed here: https://www.rns-pdf.londonstockexchange ... 1426604911