10 Mar 2021 11:09
Royal Mail plc
(Incorporated in England and Wales)
Company Number: 8680755
LSE Share Code: RMG
ISIN: GB00BDVZYZ77
LEI: 213800TCZZU84G8Z2M70
10 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
TRADING UPDATE AND REVISED FULL YEAR EXPECTATIONS
Following the third quarter trading update published on 11 February 2021, recent letter volume and revenue trends in Royal Mail have been more robust than anticipated, with Advertising, Business and Stamped Mail all performing above our previous expectations. Growth in parcels in the UK has remained strong but broadly in line with expectations.
As we near the completion of the Royal Mail management restructuring programme announced in June 2020, the charge associated with this is now anticipated to be c. £90 million compared to the original estimate of £140 million. We will deliver the targeted savings of £130 million annually, with around £15 million realised in the current financial year FY2020-21.
GLS performance remains in line with prior expectations.
As a result, if the current trading performance in Royal Mail continues for the remainder of March, we would expect Royal Mail revenue for FY2020-21 to be more than £900 million higher year on year.
For the Group, adjusted operating profit for FY2020-21 is now expected to be around £700 million.
Royal Mail plc will issue a pre-close announcement on 30 March and a business update on GLS will also be provided at that time, followed by an update on Royal Mail in the UK alongside FY2020-21 results on 20 May.
Enquiries:
Investor Relations
John Crosse
Phone: 07483 390 957
Email: investorrelations@royalmail.com
Royal Mail investor relations line: 020 7449 8183
Media Relations
Jenny Hall
Phone: 07776 993 036
Email: jenny.hall@royalmail.com
Mark Street
Phone: 07515 924 344
Email: mark.street@royalmail.com
Royal Mail press office: press.office@royalmail.com
Company Secretary
Mark Amsden
Phone: 020 7449 8289
Email: cosec@royalmail.com
FORWARD-LOOKING STATEMENTS
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.