UK Business Post announces interim results for the 6 months ended 30 September 2004
Business Post, the UK’s leading independent express delivery company, announces continued progress in line with the Group’s Three Year Plan. The successful launch of UK Mail, and the continuing fast rates of growth in the HomeServe, Courier, International and UK Pallets businesses, are particularly pleasing.
Financial Highlights
Turnover increased by 23% to £109.9m.
Profit before goodwill amortisation and tax was up by a satisfactory 12% at £9.1m. The traditional second half bias is expected to be slightly more pronounced this year as a result of the Group’s newly-launched mail activities. Profit before tax was £8.8m.
Earnings per share before goodwill amortisation increased by 10% to 11.8p; after goodwill amortisation, earnings per share were 11.2p.
Net cash inflow from operating activities increased to £8.3m from £6.0m.
An interim dividend per share of 6.4p, up 8%, has been declared.
Commercial Highlights
Express, the Group’s core business-to-business parcel service, increased its turnover by 6% to £65.2m, estimated to represent a share of approximately 7.5%, in a market which remains competitive.
International, which is primarily a business-to-business service, increased its turnover by 19% to £13.6m, with substantial contributions to the increased turnover from International Mail, which was launched in July 2002, and FedEx International Priority Freight, which started in April 2004.
HomeServe, the Group’s UK business-to-consumer parcel service, continued its success by increasing turnover by 57% to £10.8m through focusing on high value products and working closely with customers.
UK Mail commenced trading in May 2004, and has since moved over 23 million items, securing customers in the telecoms, utilities, government and retail sectors. It currently has an annualised turnover of over £12m and remains on budget, with an expectation to become profitable during the second half of the current financial year. Altogether, it has been a highly satisfactory start.
Peter Kane, Chairman, stated “The Board believes that the Group already contains the elements necessary for further substantial profitable growth, not only in UK Mail but also through its other businesses, which are collectively capable of driving double digit percentage growth. The Group’s strong financial performance and excellent cash flow characteristics place the Group in a good position to continue investing in new products and services and create further differentiation from its competitors. Trading since 30 September has been encouraging and the Board expects further good progress in the second half of the year”.
