Pre-Close Announcement and GLS Business UpdateSource: RNS
Royal Mail plc
(Incorporated in England and Wales)
Company Number: 8680755
LSE Share Code: RMG
30 March 2021
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR
PRE-CLOSE ANNOUNCEMENT AND GLS BUSINESS UPDATE
Trading has been broadly in line with the update published on 10 March. Group adjusted operating profit for FY2020-21 is still expected to be around £700 million.
Martin Seidenberg (CEO GLS) and Thorsten Pruin (CFO GLS), will provide a business update at 14:30 BST today, outlining medium term targets for the GLS business. This includes a focus on International and B2C as key growth opportunities, leveraging the strength of the GLS network and business model. From FY2019-20 to FY2024-25, GLS expects to grow revenue at around 12% CAGR (from €3,614 million in FY2019-20), more than double operating profit to €500 million and generate €1 billion of free cash flow1. Capex over the period is expected to remain in the range of 3-4% of revenue.
For FY2020-21, GLS adjusted operating profit is expected to be around £350 million (€390 million) and adjusted operating profit margin c. 8.7%.
An update on Royal Mail in the UK will be provided by Simon Thompson alongside FY2020-21 results on 20 May.
The Board has reviewed the performance of the Group during the past year and concluded that it is appropriate to pay a one-off final dividend of 10p per share in respect of FY2020-21, payable on 6 September 2021 to shareholders on the register at 30 July 2021, subject to approval at the 2021 AGM. The Board expects to announce a new dividend policy for the Group with FY2020-21 results on 20 May.
1. FY2020-21 to FY2024-25, including capital lease payments.
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This document contains certain forward-looking statements concerning the Group's business, financial condition, results of operations and certain Group's plans, objectives, assumptions, projections, expectations or beliefs with respect to these items. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'will', 'would', 'should', 'expects', 'believes', 'intends', 'plans', 'potential', 'targets', 'goal', 'forecasts' or 'estimates' or similar expressions or negatives thereof.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the Group's actual financial condition, performance and results to differ materially from the plans, goals, objectives and expectations set out in the forward-looking statements included in this document.
All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to the Group or any persons acting on its behalf are expressly qualified in their entirety by the factors referred to above. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. No assurance can be given that the forward-looking statements in this document will be realised; actual events or results may differ materially as a result of risks and uncertainties facing the Group. Subject to compliance with applicable law and regulation, the Group does not intend to update the forward-looking statements in this document to reflect events or circumstances after the date of this document, and does not undertake any obligation to do so.