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Royal Mail delivers “resilient” results

Royal Mail has released its business results for the 6 months up the 27th September 2015. They describe them as “resilient”. You can find the full details here.

CEO Moya Greene says: “Royal Mail is the pre-eminent letters and parcels carrier in the UK. We have delivered a resilient performance in the first half, demonstrating our ability to respond to a competitive trading environment.

We delivered parcel volume and revenue growth in the UK, which continues to be a challenging market. Addressed letter volume decline was at the better end of our forecast range. We are driving through a range of product innovations and service improvements at pace, as well as targeting new areas of growth and enhancing our offering.

As in previous years, the full year outcome will be dependent on our important Christmas period, for which we have extensive preparations in place.”

Here are some highlights:

– Revenue flat with growth in UK and European parcels revenue offsetting the decline in UK letter revenue
– Adjusted group operating profit £342m
– Profit margin 7.8% – flat
– UK parcel volumes up 4% (H1 2014 up 2%) – driven by customer wins including John Lewis, House of Fraser, Waterstones, ASOS
– Structural decline in letters 4%

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