Royal Mail share price: Group’s full-year revenue inches higher
Royal Mail Group (LON:RMG) has updated investors on its full-year performance this morning, unveiling a small rise in revenues.
**Highlights from Royal Mail’s statement:**
Revenue was up one per cent, with growth in GLS offsetting the decline in UKPIL revenue.
Adjusted operating profit before transformation costs was £742 million, up five per cent.
Adjusted operating profit margin after transformation costs declined by 10 basis points as a result of increased transformation costs due to our cost avoidance and efficiency programme.
In-year trading cash flow of £254 million reflects increased investment in growth capital expenditure.
Our strategic focus on costs resulted in a one per cent reduction in underlying UKPIL operating costs before transformation costs.
Net debt reduced to £224 million due to free cash flow, offset by dividend payments.
The Board is recommending a final dividend of 15.1 pence per ordinary share giving a total dividend of 22.1 pence per share for 2015-16, up five per cent.
Moya Greene, Chief Executive Officer, commenting on the results said:
“We have delivered a resilient performance in challenging markets. Group revenue was up one per cent and our strategic focus on costs resulted in a one per cent decline in our UK underlying costs. We continue to invest in our transformation and initiatives to support growth.
“Our UK parcel revenue and volumes grew by one per cent and three per cent, respectively. Our addressed letter volumes declined by three per cent; total letter revenue by two per cent. GLS, our European parcel business, continued to perform strongly, supporting the overall Group revenue performance.
“We are introducing new and improved products and services and responding quickly to changing customer needs. These measures, alongside our emphasis on customer focus and delivering a value for money service, have helped us to maintain our pre-eminent position in UK letters and parcels and driven growth in GLS.”
**More to follow…**
As of 07:06 BST, Thursday, 19 May, Royal Mail share price is 508.00p.