Royal Mail boosted with higher half-year profits by parcels business GLS
STRONG growth at its European parcels business GLS delivered higher half-year profits for Royal Mail.
Growth at the Royal Mail's European parcels business GLS improved their half-year profits
But the company warned that a dispute with workers over changes to pensions could hit its performance in the second half.
Shares rose 6½p to 395½p as it posted a 7 per cent rise in adjusted operating profit before transformation costs to £323 million on 2 per cent higher revenue of £4.83 billion.
GLS operating profit was up by 8 per cent to £90 million on 9 per cent higher revenue, while UK parcels and letters revenue was flat at £3.6 billion.
CEO Moya Greene said: "GLS delivered a strong performance with revenue up 9 per cent.
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We have won new parcels business; volumes were up 6 per cent. There was a resilient letters performance
"Outside the EU, GLS is also growing through selective acquisitions to capture higher growth markets.
"UKPIL revenue was broadly unchanged, having declined by 2 per cent in 2016-17.
"Our investment in our business is paying off.
"We have won new parcels business; volumes were up 6 per cent. There was a resilient letters performance.
GLS operating profit was up by 8 per cent to £90 million on 9 per cent higher revenue
UK parcels and letters revenue was flat at £3.6 billion
"As previously announced, we are now in external mediation with the CWU.
"Our priority is to reach agreement with the CWU to help underpin the sustainability of the business.