LONDON (dpa-AFX) - Royal Mail plc (RMG.L), a provider of postal and delivery services, reported Thursday that its fiscal 2020 profit before tax declined to 180 million pounds from last year's 241 million pounds.
Basic earnings per share were 16.1 pence, down from 17.5 pence a year ago.
Adjusted profit before tax was 275 million pounds, down from 398 million pounds a year ago. Basic earnings per share were 19.6 pence, compared to 30.5 pence last year.
Revenue increased to 10.84 billion pounds from 10.58 billion pounds last year.
Further, the company said no final dividend has been recommended for fiscal 2020.
Citing the challenges of the current year, the Board said it does not intend to pay any dividend in relation to fiscal 2021, but its ambition is to re-commence dividend payments in fiscal 2022, supported by GLS.
For fiscal 2021, the company continues to expect Royal Mail (UKPIL) to be materially loss-making. GLS profitability may potentially be reduced.
Further, the company said it is implementing a three-step plan, including immediate action on costs. This will result in a 130 million pounds saving in people costs next year and flat non-people costs, along with a reduction of around 300 million pounds in capex over the next two years, to address the immediate impact of COVID-19.
Under the plan, the company is proposing a management restructure impacting around 2,000 roles.
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