20th May 2021 11:07
(Alliance News) - Royal Mail PLC on Thursday said its annual performance was "well above initial expectations", driven by a boom in online shopping.
Pretax profit for the financial year ending March 28 improved significantly to GBP726 million, up from GBP180 million the year before. Adjusted operating profit more than doubled to GBP702 million.
Revenue rose 17% year-on-year to GBP12.64 billion from GBP10.84 billion the year before, which the postal operator attributed to strong parcel growth at both Royal Mail and international arm GLS.
Royal Mail's financial performance has been given a significant boost by the pandemic, with customers turning to online shopping as high street stores were forced to shut. Parcels revenue was up 39%, partly offset by a letters revenue decline of 13%.
The shift in focus away from letters to parcels was confirmed as the company revealed it generated more revenue from parcel deliveries than letters for the first time in its five-century history.
"Last year stood out as one of remarkable change at Royal Mail," said Chief Executive Simon Thompson.
"It has been challenging at times, but we have learnt that we can deliver results and change at lightning pace when we are united by a common purpose. From starting to deliver on Sundays through to trialling drones - we're changing. And it's working.
"Looking ahead, we must remain laser focused on accelerating the pace of change, being brilliant for our customers, and doing all this in an increasingly efficient way."
Royal Mail stated that it was difficult to provide specific guidance for its 2022 financial year but that it felt "there are grounds for optimism", and had outlined opportunities which it planned to exploit.
A one-off final dividend will be paid of 10 pence a share, compared to 7.5p last year. No interim dividend was paid for the year. Royal Mail on Thursday outlined its future dividend policy, aiming for 20p per share for its next financial year.
Royal Mail shares were down 2.5% at 512.12 pence Thursday morning in London.
By Will Paige; [email protected]
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