Group performance1,2
· Revenue up two per cent on an underlying basis, to £10.2 billion, driven by UKPIL and GLS parcels growth.
· On a reported basis, operating profit before transformation costs was £236 million.
· Adjusted operating profit before transformation costs was £694 million, up one per cent on an underlying basis.
· Adjusted operating profit margin after transformation costs of 5.7 per cent increased by 20 basis points on an underlying basis.
· Total net cash investment was £445 million, down from £492 million in 2016-17. In-year trading cash flow increased to £545 million.
· The Group had a net cash position of £14 million at 25 March 2018. This benefitted by around £100 million from the timing of the 2017-18 frontline pay award.
· The Royal Mail Pension Plan closed to future accrual in its Defined Benefit form on 31 March 2018. A new Defined Benefit Cash Balance Scheme was put in place from 1 April 2018. The overall ongoing annual cash cost of pensions will continue to be around £400 million.
· The Board is recommending a final dividend of 16.3 pence per ordinary share, giving a total dividend of 24.0 pence per share for 2017‑18, up four per cent.
And later;
Dividends
The final dividend of 15.6 pence per ordinary share in respect of the 2016-17 financial year was paid on 28 July 2017, following shareholder approval.
The interim dividend of 7.7 pence per ordinary share in respect of the 2017-18 financial year was paid on 10 January 2018 to shareholders on the register at the close of business on 8 December 2017.
The Board is recommending a final dividend of 16.3 pence per ordinary share, payable on 31 August 2018 to shareholders on the register at the close of business on 27 July 2018, subject to shareholder approval at the AGM on 19 July 2018. This gives a total dividend for the year of 24.0 pence.
As previously stated, given the seasonality of the Group's business, the Board would expect to pay an interim dividend each year equal to approximately one-third of the prior year's total dividend and to set the final dividend for each year in light of the full year performance of the Group in line with the progressive dividend policy.
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