Half year results 2016-17 :Profits down 5% to 320m

[POSTMAN]

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We’ve announced our results for the half year ended 25 September 2016

This morning, we've announced our results for the half year ended 25 September 2016.

• Money we earn as a Group was up 1%*
  Money we earn from UKPIL was down 1%
  Money we earn from GLS was up 9%
  Profit** we make as a Group down 5% to £320 million
  UK parcel volumes grew 2%. The money we earn from UK parcels grew 3%
  Addressed letter volumes declined by 4%. Money we earn from all letters down 3%.

As part of our results we have given an update on pensions:

• We know how important retirement benefits are to our people
  We were sorry that we had to write to RMPP members in the summer to say it is unlikely that we can keep the Plan open in its current form after March 2018
  We expect the surplus in the Plan will run out in 2018
  After this, the annual cost would be more than double the current total annual contributions. This isn’t affordable or sustainable
  In active discussions with our Unions about the future of the Plan. We will consult with our members in due course
  Targeting to have this resolved around the end of the financial year.

Courier News Flash on today's results Tune into RMtv next week for a special programme with Moya Greene on our results.


* Movements in money we earn, costs and margin are shown on an underlying basis unless otherwise stated. 'Underlying' means we have adjusted for certain items to make the results easier to compare and understand.

**Profit refers to adjusted operating profit before transformation costs. Adjusted results exclude specific items and the pension charge to cash difference adjustment, which are items that are large or significant in nature and are excluded to make the results easier to compare.

[POSTMAN]

Moya Greene, Chief Executive Officer, commenting on the results, said:

“Our performance was broadly in line with our expectations. Group revenue increased by one per cent on an underlying basis, driven by a good performance from GLS, our continental European parcels business. We delivered UK parcel volume and revenue growth including new contract wins. Addressed letter volume decline was within our forecast range. The recent acquisition of ASM in Spain and GSO in California supports GLS’ strategy of targeted and focused geographic expansion.

“We have increased our cost avoidance target from £500 million to £600 million of annualised costs cumulative over the three financial years ending 2017-18. We are targeting to reduce underlying UKPIL operating costs before transformation by up to one per cent in 2016-17, depending on the absorbable rate of change within our organisation. We are past the peak of investment. Net cash investment is expected to be no more than £500 million per annum, compared with an average of £615 million over the past three years.

“As always, our performance for the full year will be dependent on the important Christmas period. Extensive planning, which began in the spring, will help us to manage our busiest time. This includes the recruitment of over 19,000 temporary staff and opening nine temporary parcel sort centres.”

Full press release...
http://www.royalmailgroup.com/royal-mai ... ember-2016" onclick="window.open(this.href);return false;

[k979aaa]

Packets take longer than letters to deliver and yet no more staff vans yet still lapsing madness!