LONDON (dpa-AFX) - Royal Mail Plc (RMG.L) said its first half saw continued revenue growth across the Group, with improved profitability in Royal Mail and GLS performing strongly. Adjusted operating profit increased to 404 million pounds from 37 million pounds, prior year, driven by a turnaround in the profitability of Royal Mail and restructuring charges incurred in the prior year.
The Board of Royal Mail has concluded that it is now appropriate to start to reduce cash holdings. As a first step, it plans to return 400 million pounds of capital to shareholders, via a share buyback and special dividend. A special dividend of 200 million pounds will be paid alongside the interim dividend of 6.7 pence per share on 12 January 2022. A 200 million pounds share buyback will begin immediately and is due to complete ahead of the AGM in July 2022.
For 26 weeks ended 26 September 2021, profit before tax increased to 315 million pounds from 17 million pounds, prior year. Earnings per share was 26.9 pence compared to 1.4 pence. Adjusted profit before tax increased to 378 million pounds from 18 million pounds, last year. Adjusted earnings per share was 30.2 pence compared to 0.4 pence. First half revenue increased to 6.07 billion pounds from 5.67 billion pounds, last year.
For fiscal 2021-22, adjusted operating profit at Royal Mail is projected to be around 500 million pounds; while GLS guidance remains unchanged.
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