UK Mail : Interim Results November 2014

18th November 2014

UNAUDITED INTERIM RESULTS

For the 6 months ended 30 September 2014

Highlights

• Group revenues of £241.4m level with the previous year, adjusting for one less working day (2013: £243.4m)
• New products and service offerings continue to make good progress, with our one hour delivery window roll-out complete
• Relocation of hub from Birmingham to Ryton with full hub automation on track for completion, on budget, in May 2015
• Group operating profit (pre-exceptional) increased by £0.1m to £11.4m, adjusting for one less working day (2013:£11.8m)
• Group profit before tax (pre-exceptional) of £11.4m level with the previous year, adjusting for one less working day (2013: £11.9m)
• Exceptional items of £6.5m (2013: £nil), comprising Pallets' goodwill impairment of £7.3m offset by HS2 compensation of £0.8m
• Net cash at period end of £9.5m (2013: £19.5m), after funding capital investment of £17.9m
• Interim dividend increased by 2.8% to 7.3p per share (2013: 7.1p)

Guy Buswell, Chief Executive Officer of UK Mail, said:-

"Overall the Group had a satisfactory first half, with adjusted operating profit ahead of what was a very strong performance in the first half of last year.

"Trading in the initial weeks of the second half, and overall trends within our individual businesses, have been as anticipated, with our peak trading weeks still to come.  Our expectations for the full year remain unchanged.

"We are now in a period of significant investment and transition, as we put the infrastructure in place for the next phase of growth.  The new fully automated hub under construction represents the largest strategic development in our history.  Ours is a growth market that is rapidly polarising between high quality, innovative and sophisticated operators and those at the opposite end of the value scale.  Against such a backdrop, the investments we are making place us at a significant competitive advantage for the medium and longer term.

To read the full report please go to: Interim Trading Statement Nov 2014

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