Royal Mail: operating profit for FY2020-21 is still expected to be around £700 million
Royal Mail have released a trading update revealing 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.