Moya Greene, Chief Executive Officer, commenting on the results, said:
"We had a good start to the year. Group revenue was up two per cent on an underlying basis. GLS delivered a strong performance with revenue up nine per cent. Outside the EU, GLS is also growing through selective acquisitions to capture higher growth markets.
"UKPIL revenue was broadly unchanged, having declined by two per cent in 2016-17. Our investment in our business is paying off. We have won new parcels business; volumes were up six per cent. There was a resilient letters performance. Our strategic focus on costs drove a one per cent underlying reduction in adjusted UKPIL operating costs (before transformation costs).
"Our performance for the full year, as always, will be dependent on the important Christmas period. We are opening six temporary parcel sort centres and recruiting over 20,000 staff. We are also extending opening hours at many of our Enquiry Offices to help retailers and consumers.
"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."
and;
Group performance1,2
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Revenue was up two per cent on an underlying basis. Strong growth in GLS more than offset broadly unchanged revenue at UKPIL.
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Adjusted operating profit before transformation costs was £323 million, up seven per cent.
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Adjusted operating profit margin after transformation costs increased by 30 basis points on an underlying basis.
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Reported operating profit before transformation costs was £89 million.
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We are targeting net cash investment of around £450 million in 2017-18 compared to £492 million in 2016-17 and £656 million in 2015-16.
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In-year trading cash flow increased to £125 million.
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In line with our stated interim dividend policy3, the Board has declared a dividend of 7.7 pence per ordinary share for the half year ended 24 September 2017, which will be paid on 10 January 2018 to shareholders on the register on 8 December 2017.
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