TIDMBPG
RNS Number : 6075S
Business Post Group PLC
21 May 2009
21 May 2009
BUSINESS POST GROUP PLC
PRELIMINARY RESULTS
FOR THE YEAR ENDED 31 MARCH 2009
Highlights
* Group revenues up 7.6% to GBP386m (2008: GBP359m)
* UK Mail revenues up 19.8% to GBP164m (2008: GBP137m)
* Profit before tax (before exceptional items) up 23.2% to GBP17.5m (2008:
GBP14.2m)
* Pre-tax exceptional charges of GBP1.1m (2008: GBPnil)
* Profit before tax up 15.5% to GBP16.4m (2008: GBP14.2m)
* Proposed final dividend of 10.8p per share (2008: 10.8p)
* Strong balance sheet with net cash balances at year end of GBP9.5m (2008:
GBP6.2m)
Guy Buswell, Chief Executive of Business Post, said:
"We have again made good progress in the year, despite the challenging trading
environment in the second half. We have reacted quickly to the changing
conditions, reducing our cost base further which helped us to deliver another
significant improvement in financial performance.
UK Mail achieved good revenue and profit growth, and further increased its
market share. Parcels profits increased with reduced operating costs more than
offsetting the impact of lower revenues, and here also we grew market share.
Specialist Services also performed well.
Over the past three years, Business Post's performance has been transformed and
we are now the UK's leading independent integrated postal group. Our aim now is
to consolidate this position, using our highly efficient and integrated network
to drive profitable revenue growth.
Trading in the early weeks of the new financial year has been in line with
management expectations. Whilst there have been some tentative signs of an
improvement in market conditions, it is too early to discern any sustainable
trend. However, our business model and strategy, underpinned by a strong balance
sheet, are proving resilient in the current economic climate. We are encouraged
by our performance to date and are confident of the Group's ability to continue
to outperform the markets in which we operate."
For further information, please contact:
+--------------------------------------------+----------------------------+
| Business Post Group plc | |
+--------------------------------------------+----------------------------+
| Guy Buswell (Group Chief Executive) | 0121 335 1111 |
+--------------------------------------------+----------------------------+
| Steven Glew (Group Finance Director) | 01753 706 070 |
| | |
+--------------------------------------------+----------------------------+
| Hogarth Partnership | |
+--------------------------------------------+----------------------------+
| John Olsen | 020 7357 9477 |
| Fiona Noblet | |
| Ian Payne | |
+--------------------------------------------+----------------------------+
Introduction
The Group has again made good progress in the year, despite an increasingly
challenging trading environment in the second half. We have reacted quickly to
the changing economic conditions to reduce our cost base further, whilst
continuing to improve customer service and grow our market share.
UK Mail has achieved good growth in revenues and profit, driven by new business
wins and further mail volumes from existing customers. We continue to make
significant gains in market share, and to develop innovative new products to
increase the proportion of the market available to us.
Parcels revenues are down on the previous year, reflecting the difficult
economic environment in the second half, although we are confident that we
outperformed the market. Parcels profits increased on last year as we have
reduced our operating costs, more than offsetting the impact of the lower
revenues. After three years of rigorous management action, the Parcels business
is now a highly effective and competitive player in the market, with its
operating margin improved by 0.9% to 9.5% in the year.
Revenues and profits in Specialist Services were up significantly on last year,
with new national contracts driving a strong improvement in our Courier
business, and a lower cost base delivering significant margin improvement.
Overall we have achieved a further significant improvement in financial
performance against the prior year. Group revenues grew by 7.6% to GBP385.7m and
profit before tax at GBP17.5m (before exceptional charges of GBP1.1m) was 23.2%
up on last year (2008: GBP14.2m). At the year end, net cash balances had
increased to GBP9.5m (2008: GBP6.2m).
Adjusted basic earnings per share, which exclude the impact of the exceptional
items, increased 26.1% to 22.7p (2008: 18.0p). Basic earnings per share
decreased 5.0% to 17.1p (2008: 18.0p).
References to operating profit/margin throughout this report are excluding
exceptional items.
STRATEGIC PROGRESS
Over the past three years, the operational and financial performance of Business
Post has been very successfully transformed. We have effected wholesale changes
to the operational management teams; we have reversed the structural and
operational weaknesses in the Parcels business and turned it into a business
delivering market leading performance; we have built UK Mail into a clear market
leader; we have created an integrated business model both in terms of our
network and our business development processes; we have achieved significant
reductions in our cost base whilst improving our customer service levels; and we
have delivered margin improvement across the group.
As a result, Business Post has become the UK's leading independent integrated
postal group.
Our aim now is to consolidate this position. We are focused on ensuring that our
network continues to operate at the highest levels of efficiency, and on using
that integrated network to drive profitable revenue growth. We will achieve this
by developing innovative new products and services, and by capitalising on our
leadership and differentiated positioning to increase both the size of the
market available to us and our share of that market, regardless of the trading
conditions.
Results
The results can be summarised as follows:
+----------------------------------+------------+--+----------+--+-------------+
| | Year to 31 March |
+----------------------------------+-------------------------------------------+
| | 2009 | | 2008 | |Inc/(Dec) % |
| | | | GBPm | | |
| | GBPm | | | | |
+----------------------------------+------------+--+----------+--+-------------+
| | | | | | |
+----------------------------------+------------+--+----------+--+-------------+
| Group revenue | 385.7 | | 358.6 | | 7.6% |
+----------------------------------+------------+--+----------+--+-------------+
| | | | | | |
+----------------------------------+------------+--+----------+--+-------------+
| Operating profit (before | 17.7 | | 14.5 | | 22.1% |
| exceptional items) | | | | | |
+----------------------------------+------------+--+----------+--+-------------+
| Exceptional items | (1.1) | | - | | - |
+----------------------------------+------------+--+----------+--+-------------+
| Operating profit | 16.6 | | 14.5 | | 14.5% |
+----------------------------------+------------+--+----------+--+-------------+
| Net finance costs | (0.2) | | (0.3) | | 33.3% |
+----------------------------------+------------+--+----------+--+-------------+
| Profit before tax | 16.4 | | 14.2 | | 15.5% |
+----------------------------------+------------+--+----------+--+-------------+
| Taxation | (7.1) | | (4.5) | | (57.8%) |
+----------------------------------+------------+--+----------+--+-------------+
| Profit after tax | 9.3 | | 9.7 | | (4.1%) |
+----------------------------------+------------+--+----------+--+-------------+
| | | | | | |
+----------------------------------+------------+--+----------+--+-------------+
| Basic earnings per share | 17.1p | | 18.0p | | (5.0%) |
+----------------------------------+------------+--+----------+--+-------------+
| Adjusted earnings per share | 22.7p | | 18.0p | | 26.1% |
| (before exceptional items - note | | | | | |
| 2) | | | | | |
+----------------------------------+------------+--+----------+--+-------------+
Revenue and operating profit are analysed as follows:
+----------------+---------+--------+--------+--+--------+--+----------------+--+---------+--+--------+
| | Revenue | | Operating Profit |
+----------------+---------------------------------------+--+-----------------------------------------+
| | 2009 | | 2008 | | Inc/ | | 2009* | | 2008 | | Inc/ |
| | GBPm | | | | | | GBPm | | GBPm | | |
| | | | GBPm | | (Dec) | | | | | | (Dec) |
| | | | | | % | | | | | | % |
+----------------+---------+--------+--------+--+--------+--+----------------+--+---------+--+--------+
| | | | | | | | | | | | |
+----------------+---------+--------+--------+--+--------+--+----------------+--+---------+--+--------+
| Parcels | 172.3 | | 179.8 | | (4.2%) | | 16.4 | | 15.4 | | 6.5% |
+----------------+---------+--------+--------+--+--------+--+----------------+--+---------+--+--------+
| Mail | 164.5 | | 137.3 | | 19.8% | | 11.6 | | 10.0 | | 16.0% |
+----------------+---------+--------+--------+--+--------+--+----------------+--+---------+--+--------+
| Specialist | 48.9 | | 41.5 | | 17.8% | | 2.5 | | 1.3 | | 92.3% |
| services | | | | | | | | | | | |
+----------------+---------+--------+--------+--+--------+--+----------------+--+---------+--+--------+
| Total | 385.7 | | 358.6 | | 7.6% | | 30.5 | | 26.7 | | 14.2% |
+----------------+---------+--------+--------+--+--------+--+----------------+--+---------+--+--------+
| | | | | | | | | | | | |
+----------------+---------+--------+--------+--+--------+--+----------------+--+---------+--+--------+
| Central costs | | | | | | | (12.8) | | (12.2) | | (4.9%) |
+----------------+---------+--------+--------+--+--------+--+----------------+--+---------+--+--------+
| Operating profit (before exceptional items) | | 17.7 | | 14.5 | | 22.1% |
| *Before exceptional items | | | | | | |
+ + +----------------+ +---------+ +--------+
| | | | | | | |
+----------------+---------+--------+--------+--+--------+--+----------------+--+---------+--+--------+
Parcels
Revenues in Parcels, which comprises the Group's business-to-business,
business-to-consumer and international parcel delivery service, were down 4.2%
for the year to GBP172.3m (2008: GBP179.8m). Revenues showed good growth in the
first half, but were down in the second half reflecting the increasingly
difficult economic environment. However, operating profit increased by 6.5% to
GBP16.4m with the operating margin increasing by 0.9% to 9.5% as our operations
continued to achieve high levels of efficiency, enabling us to reduce our
operating costs. The UK express parcels market as a whole declined significantly
during the second half and we are therefore confident that we have gained market
share, through a strong sales effort combined with a low cost network which
allows us to win profitable business in competitive tenders.
We continue to be successful in attracting significant new corporate customers,
including a large premium service B2C contract for a leading UK high street
retailer, and a major B2B contract for one of the world's largest office
supplies companies. At the same time, we see good growth opportunities in the
Small & Medium Enterprise marketplace, to which our highly efficient and
flexible network and systems are well suited.
At the start of the year we put in place plans to improve the efficiency and
effectiveness of our Parcels operation, strengthening operational management at
all levels, and introducing new mechanisms to plan and manage our operations to
achieve challenging targets. As the economic situation worsened we acted quickly
to reduce our cost base further, with a particular focus on our fixed costs.
These actions included the closure of six sites, reducing the total to 52, a
reduction in our vehicle fleet of some 15%, and a significant number of staff
reductions.
These changes, which incurred an exceptional cost of GBP0.8m, a major factor in
the overall exceptional cost of GBP1.1m, have been successful in that we have
managed to substantially reduce our cost base whilst further improving service
levels to customers.
We have actions planned to reduce our cost base still further. The main focus
will be to implement partial automation into our network, which will yield
significant efficiency savings, and on which we currently plan to invest some
GBP2m in the coming year.
Mail
UK Mail showed further good growth in both revenues and profit. As expected and
as previously signalled, the rate of growth has moderated from the very high
levels previously achieved, but the business enjoyed continued success in
attracting significant new business as well as retaining and generating further
mail growth from existing customers. As a result, revenues rose 19.8% to
GBP164.5m (2008: GBP137.3m), and we now enjoy a market share, by volume of mail
collected in the UK, of some 17%, compared to 11% a year ago.
UK Mail operating profits were up 16.0% to GBP11.6m, reflecting the good revenue
growth offset by a slight decrease in the operating margin to 7.1% (2008: 7.3%).
Importantly, some 70% of our mail volume is based on delivering regular
statements or statutory notifications and is therefore less exposed to
fluctuations in levels of economic activity. However, the volume of other more
discretionary mail, such as direct marketing material, has inevitably been
impacted as a result of the economic slowdown.
The improvements in our overall network performance, together with increased
focus on mail customer service, has led to further enhancements in our already
industry leading mail service levels.
We continue to see good growth prospects for our mail business. The primary
opportunities lie through existing customers providing us with more of their
mail volumes, new customers being attracted to the services we currently offer,
and the development of new products and services that will further increase the
proportion of the total UK mail market available to us.
We have recently won three important new contracts with leading financial
services organisations who are increasingly attracted to the efficiencies that
we can offer. These contracts are in the process of being implemented and the
resultant volumes will come on stream progressively during the first half of the
year.
To date, we have offered business customers a two-day time-definite service,
meaning that the available market to us is some 33% of the total UK postal
market by volume. Recent and ongoing product innovation will open up new areas
of the market for us and will further reinforce our position of market
leadership.
'imail', launched late last year, is a next day or two-day mail service allowing
customers of any size to electronically transmit mail items to our national
network of mail centres where it is printed, enveloped and sent for next day
delivery. imail is developing a growing customer base and we continue to
introduce new facilities to the service to further improve the benefits it
offers.
Our other product innovations - 'Disguised Mail', which involves the concealing
of sensitive mail items as ordinary mail and 'Returned Mail', which provides
efficient returned mail handling for our customers - continue to expand their
customer base.
This and other planned product innovation will increasingly allow us to provide
our customers with a wider range of mail solutions and efficiencies, whilst
significantly differentiating ourselves from our competition.
Following publication of the independent Hooper Review of the UK postal services
sector, the resultant Postal Services Bill is currently progressing through
parliament. The Bill's proposals are designed to create a stronger and more
efficient Royal Mail, an outcome that we believe will be of significant benefit
to the UK mail industry as a whole.
Specialist Services
Overall revenues in Specialist Services, comprising our nationwide palletised
goods delivery service (UK Pallets) and same-day courier activities (UK Mail -
Courier) increased by 17.8% to GBP48.9m (2008: GBP41.5m). Specialist Services
operating profits increased by 92.3% to GBP2.5m (2008: GBP1.3m).
UK Pallets again performed well, with revenues up 1.3% for the year to GBP30.8m
and good profit growth driven by improvements in the quality of the pallet
network, management and marketing initiatives.
This business, like our parcels business, showed good revenue growth in the
first half but the second half performance was impacted by the economic
environment with revenues down. This performance was nonetheless ahead of the
market, and this business is therefore also gaining market share.
Revenues in our Courier business increased significantly by 63.1% to GBP18.1m,
with profit also well ahead. This reflects the successful implementation of our
strategy to develop a nationwide network of couriers to allow us to win and
effectively support national courier contracts. We commenced a number of new
contracts in the period, and we see further opportunities to build on the
advantages that our network gives us, and on our proven ability to support
national contracts with high service levels.
Both our Specialist Services businesses have taken action to further reduce
their cost base, and this has been a major factor in the increase in the
operating margin to 5.1% (2008: 3.1%).
Exceptional items
The Group reported total exceptional costs of GBP3.0m (2008: GBPnil).
Of this, GBP1.1m (2008: GBPnil) relates to the programme we instigated to reduce
our cost base in the light of the changed economic environment. This programme
involved a number of initiatives including reducing headcount and the closure of
six sites, resulting in redundancy costs of GBP0.8m and property related costs
of GBP0.3m.
The exceptional tax charge of GBP1.9m comprises the write-off of a GBP2.2m
(2008: GBPnil) deferred taxation balance resulting from the phased abolition of
the UK Industrial Building Allowances ('IBAs') following enactment of the
Finance Act 2008, offset by GBP0.3m (2008: GBPnil) tax relief in respect of the
exceptional restructuring costs referred to above.
Finance costs
Net interest payable decreased to GBP0.2m (2008: GBP0.3m) largely due to the
increase in net cash balances.
Cash Flow and Balance Sheet
The Group has a very strong balance sheet with a net cash inflow GBP1.6m for the
year, leading to net cash at the end of the year of GBP9.5m (2008: GBP6.2m).
Cash inflow from operating activities totalled GBP20.8m, including GBP0.8m of
cash generated from improved working capital.
Capital expenditure for the period was GBP8.3m (2008: GBP5.6m). The capital
expenditure for the period includes GBP3.7m on IT, as we continue to develop our
systems infrastructure, and GBP3.7m on property, plant and equipment to support
the growth of our business.
Dividend
The Board has proposed an unchanged Final Dividend of 10.8p (2008: 10.8p)
resulting in an unchanged total dividend for the year of 17.2p (2008: 17.2p).
The total dividend for the year is covered 1.3 times by adjusted earnings (2008:
1.05 times).
The Final Dividend will be paid on 14 August 2009 to shareholders registered on
24 July 2009 with an ex-dividend date of 22 July 2009.
Taxation
The taxation charge for the year includes a one-off charge of GBP2.2m, due to
the write-off of deferred tax balances to reflect the withdrawal of Industrial
Buildings allowances, following the enactment in July 2008 of the Finance Act
2008. This amount is non-cash.
Earnings per share
Adjusted basic earnings per share, which exclude the impact of the exceptional
items, increased 26.1% to 22.7p (2008: 18.0p). Basic earnings per share
decreased 5.0% to 17.1p (2008: 18.0p).
CURRENT TRADING & OUTLOOK
Our business model and strategy, underpinned by a strong balance sheet, are
proving resilient in the current economic climate. After the successful
implementation of change programmes over the past three years, we are now
successfully building revenue streams across a broader base of activities and
with a focus on longer term contracts in areas less directly exposed to levels
of economic activity. We are well positioned to continue to develop our business
and to benefit from further market share gains in all business areas.
Our plans and management actions are based on an assumption that economic
conditions will remain challenging throughout the current financial year. We
have identified further cost reduction initiatives, as well as a number of
potential growth opportunities, to offset the volume impact of the recessionary
conditions. The financial benefits of the recently awarded mail contracts will
be felt progressively during the first half of the year.
Trading in the early weeks of the new financial year has been in line with
management expectations. Whilst there have been some tentative signs of an
improvement in market conditions, it is too early to discern any sustainable
trend. However, we are encouraged by our performance to date and are confident
of the Group's ability to continue to outperform the markets in which we
operate.
+--+--+-----------------+---------+----------+--+--+--+--+-------+-----------+--+-----------+--+
| Consolidated Income Statement | | | | | | | |
+-----------------------------------------------+--+--+--+-------+--------------+-----------+--+
| for the year ended 31 March 2009 | | | | | | | |
+-----------------------------------------------+--+--+--+-------+--------------+-----------+--+
| | | | | | | | | |
+--+--+-----------------+---------+----------+--+--------+----------------------------------+--+
| | | | | | | | | | | | 2008 | |
+--+--+-----------------+---------+----------+--+--+--+--+-------------------+--+-----------+--+
| | | | | | | | | | 2009 | | Restated* | |
+--+--+-----------------+---------+----------+--+--+--+--+-------------------+--+-----------+--+
| | | | | | | | | | GBPm | | GBPm | |
+--+--+-----------------+---------+----------+--+--+--+--+-------------------+--+-----------+--+
| | | | | | | | | | | | | |
+--+--+-----------------+---------+----------+--+--+--+--+-------------------+--+-----------+--+
| Revenue | | | | | 385.7 | | 358.6 | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| Cost of sales | | | | | (332.4) | | (310.5) | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| Gross profit | | | | | 53.3 | | 48.1 | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| Administrative expenses | | | | | (36.7) | | (33.6) | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| Operating profit before exceptional items | 17.7 | | 14.5 | |
+--------------------------------------------------------+-------------------+--+-----------+--+
| Exceptional administrative items | | | | | (1.1) | | - | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| Operating profit | | | | | 16.6 | | 14.5 | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| Finance costs | | | | | (0.5) | | (0.7) | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| Finance income | | | | | 0.3 | | 0.4 | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| Profit before taxation | | | | | 16.4 | | 14.2 | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| Taxation before exceptional items | | | | | (5.2) | | (4.5) | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| Exceptional taxation items | | | | | (1.9) | | - | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| Total taxation | | | | | (7.1) | | (4.5) | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| Profit for the year | | | | | 9.3 | | 9.7 | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| | | | | | | | | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| Basic earnings per share | | | | | 17.1p | | 18.0p | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| Diluted earnings per share | | | | | 16.8p | | 17.5p | |
+--------------------------------------------+--+--+--+--+-------------------+--+-----------+--+
| | | | | | | | | | | | | |
+--+--+-----------------+---------+----------+--+--+--+--+-------------------+--+-----------+--+
| * See note 4 | | | | | | | | | | |
+-----------------------+---------+----------+--+--+--+--+-------------------+--+-----------+--+
| | | | | | | | | | | | | |
+--+--+-----------------+---------+----------+--+--+--+--+-------------------+--+-----------+--+
| The profit for the financial year arises from the Group's continuing activities, and is | |
| wholly attributable to equity holders of the Company. | |
+--+--+-----------------+---------+----------+--+--+--+--+-------+-----------+--+-----------+--+
+--+----+---------+---------+-----------+------+------+---+--+----+----------+--+----------+--+
| Consolidated Balance Sheet | | | | | | | |
+-----------------------------------------------------+---+--+----+----------+--+----------+--+
| as at 31 March 2009 | | | | | | | | | |
+---------------------------------------+------+------+---+--+----+----------+--+----------+--+
| | | | | | | | | |
+--+----+---------+---------------------+------+------+-----------+------------------------+--+
| | | | | | | | | | | |
+--+----+--------------------------------------+------+---+--+----+----------+--+----------+--+
| | | | | | | | | | 2009 | | 2008 | |
+--+----+---------+---------+------------------+------+---+--+----+----------+--+----------+--+
| | | | | | | | GBPm | | GBPm | |
+--+----+--------------------------------------+------+---+--+----+----------+--+----------+--+
| ASSETS | | | | | | | | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Non-current assets | | | | | | | | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Goodwill | | | | | 9.5 | | 9.5 | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Intangible assets | | | | | 2.0 | | 1.2 | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Investment properties | | | | | 1.0 | | 1.0 | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Property, plant and equipment | | | | | 38.2 | | 36.9 | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Deferred tax assets | | | | | 0.7 | | 0.5 | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| | | | | | | | 51.4 | | 49.1 | |
+--+----+--------------------------------------+------+---+--+----+----------+--+----------+--+
| Current assets | | | | | | | | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Inventories | | | | | 0.2 | | 0.3 | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Trade and other receivables | | | | | 53.6 | | 59.5 | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Cash and cash equivalents | | | | | 18.0 | | 16.4 | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| | | | | | | | 71.8 | | 76.2 | |
+--+----+--------------------------------------+------+---+--+----+----------+--+----------+--+
| LIABILITIES | | | | | | | | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Current liabilities | | | | | | | | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Borrowings | | | | | (1.7) | | (1.7) | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Trade and other payables | | | | | (52.8) | | (56.4) | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Current tax liabilities | | | | | (2.5) | | (2.1) | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Provisions | | | | | (0.6) | | (1.2) | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| | | | | | | | (57.6) | | (61.4) | |
+--+----+--------------------------------------+------+---+--+----+----------+--+----------+--+
| | | | | | | | | | | |
+--+----+--------------------------------------+------+---+--+----+----------+--+----------+--+
| Net current assets | | | | | 14.2 | | 14.8 | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| | | | | | | | | | | |
+--+----+--------------------------------------+------+---+--+----+----------+--+----------+--+
| Non-current liabilities | | | | | | | | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Borrowings | | | | | (6.8) | | (8.5) | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Deferred tax liabilities | | | | | (3.4) | | (1.0) | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Provisions | | | | | (0.5) | | (0.4) | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| | | | | | | | (10.7) | | (9.9) | |
+--+----+--------------------------------------+------+---+--+----+----------+--+----------+--+
| | | | | | | | | | | |
+--+----+--------------------------------------+------+---+--+----+----------+--+----------+--+
| Net assets | | | | | 54.9 | | 54.0 | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| | | | | | | | | | | |
+--+----+--------------------------------------+------+---+--+----+----------+--+----------+--+
| Shareholders' equity | | | | | | | | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Ordinary shares | | | | | 5.5 | | 5.5 | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Share premium | | | | | 16.6 | | 16.6 | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Retained earnings | | | | | 32.8 | | 31.9 | |
+----------------------------------------------+------+---+--+----+----------+--+----------+--+
| Total shareholders' equity | | | | | 54.9 | | 54.0 | |
+--+----+---------+---------+-----------+------+------+---+--+----+----------+--+----------+--+
+--+----+-------------------------------------+---+---+---+---------+---+--+---+--+---+---+---+---+
| Consolidated Cash Flow Statement |
+-------------------------------------------------------------------------------------+
| for the year ended 31 March 2009 |
+-------------------------------------------------------------------------------------+
| |
+-------------------------------------------------------------------------------------+
| | | | | | | | |
+--+----+-------------------------------------+-------+-----------------+--+----------+-------+
| | | | | 2009 | | 2008 | |
+--+----+-------------------------------------+-------+-----------------+--+----------+-------+
| | | | | GBPm | | GBPm | |
+--+----+-------------------------------------+-------+-----------------+--+----------+-------+
| Operating activities | | | | | |
+---------------------------------------------+-------+-----------------+--+----------+-----------+
| Cash generated from operations | | 25.6 | | 25.7 | |
+---------------------------------------------+-------+-----------------+--+----------+-----------+
| Finance income received | | 0.3 | | 0.4 | |
+---------------------------------------------+-------+-----------------+--+----------+-----------+
| Finance costs paid | | (0.5) | | (0.7) | |
+---------------------------------------------+-------+-----------------+--+----------+-----------+
| Taxation paid | | (4.6) | | (3.9) | |
+---------------------------------------------+-------+-----------------+--+----------+-----------+
| Net cash inflow from operating activities | | 20.8 | | 21.5 | |
+---------------------------------------------+-------+-----------------+--+----------+-----------+
| | | | | | |
+---------------------------------------------+-------+-----------------+--+----------+-----------+
| Investing activities | | | | |
+-------------------------------------------------+-------+---------+----------+--+
| Proceeds from disposal of property, plant and equipment | 0.1 | | 0.2 | |
+---------------------------------------------------------+-------------+--+----------+---+
| Purchase of property, plant and equipment | | (6.8) | | (5.0) | |
+-------------------------------------------------+-------+-------------+--+----------+-------+
| Purchase of intangible assets | | (1.5) | | (0.6) | |
+-------------------------------------------------+-------+-------------+--+----------+-------+
| Net cash outflow from investing activities | | (8.2) | | (5.4) | |
+-------------------------------------------------+-------+-------------+--+----------+-------+
| | | | | | |
+-------------------------------------------------+-------+-------------+--+----------+-------+
| Financing activities | | | | | |
+-------------------------------------------------+-------+-------------+--+----------+-------+
| Dividends paid to shareholders | | (9.3) | | (9.3) | |
+-------------------------------------------------+-------+-------------+--+----------+-------+
| Repayment of finance lease liabilities | | (0.7) | | (0.7) | |
+-------------------------------------------------+-------+-------------+--+----------+-------+
| Net proceeds from issue of ordinary share | | - | | 0.3 | |
| capital | | | | | |
+-------------------------------------------------+-------+-------------+--+----------+-------+
| Purchase of Business Post shares by the ESOT | | - | | (1.0) | |
+-------------------------------------------------+-------+-------------+--+----------+-------+
| Repayment of borrowings | | (1.0) | | (1.0) | |
+-------------------------------------------------+-------+-------------+--+----------+-------+
| Net cash outflow from financing activities | | (11.0) | | (11.7) | |
+-------------------------------------------------+-------+-------------+--+----------+-------+
| | | | | | |
+-------------------------------------------------+-------+-------------+--+----------+-------+
| Net increase in cash and cash equivalents | | 1.6 | | 4.4 | |
+-------------------------------------------------+-------+-------------+--+----------+-------+
| Cash and cash equivalents at the beginning of | | 16.4 | | 12.0 | |
| the year | | | | | |
+-------------------------------------------------+-------+-------------+--+----------+-------+
| Cash and cash equivalents at the end of the | | 18.0 | | 16.4 | |
| year | | | | | |
+--+----+-------------------------------------+---+---+---+---------+---+--+---+--+---+---+---+---+
+--+----+---------+---------+---------+---------+--+---+----------+--+----------+
| Consolidated Statement of Changes in Shareholders' Equity | |
+--------------------------------------------------------------------+----------+
| for the year ended 31 March 2009 | |
+--------------------------------------------------------------------+----------+
| | | | | | | | | | |
+--+----+---------+---------+---------+---------+--+---+-------------+----------+
| | | | | | | 2009 | | 2008 |
+--+----+-----------------------------+---------+--+---+----------+--+----------+
| | | | | | | GBPm | | GBPm |
+--+----+-----------------------------+---------+--+---+----------+--+----------+
| | | | | | | | | | | |
+--+----+---------+---------+---------+---------+--+---+----------+--+----------+
| Shareholders' equity as at the beginning of the year | 54.0 | | 53.5 |
+------------------------------------------------------+----------+--+----------+
| Dividends paid to shareholders | | (9.3) | | (9.3) |
+--------------------------------------------------+---+----------+--+----------+
| Purchase of Business Post shares by the ESOT | | - | | (1.0) |
+--------------------------------------------------+---+----------+--+----------+
| Employees' share option scheme: | | | | |
+--------------------------------------------------+---+----------+--+----------+
| - value of employee services | | 0.9 | | 0.9 |
+--------------------------------------------------+---+----------+--+----------+
| - proceeds from shares issued | | - | | 0.3 |
+--------------------------------------------------+---+----------+--+----------+
| Tax on items taken directly to equity | | - | | (0.1) |
+--------------------------------------------------+---+----------+--+----------+
| Profit for the year | | 9.3 | | 9.7 |
+--------------------------------------------------+---+----------+--+----------+
| Shareholders' equity as at the end of the year | | 54.9 | | 54.0 |
+--+----+---------+---------+---------+---------+--+---+----------+--+----------+
+--+--+--+--+--+--+--+--+--+--+--+--+--+--+--+--+--+--+--+--+------+----------+--+--+---+--+--+--+--+--+
| Notes to the Consolidated Financial Information | |
+--------------------------------------------------------------------------------+---------+
| | | | | | |
+--+-----+--------------------------------------------------+-----------------+-----+------------+
| | 1 | Segmental information | | |
+--+-----+--------------------------------------------------------------------+-----+------------+
| | | | | | | | | 2009 | | 2008 |
+--+-----+--------+-----+--------------+--------+-----------+------+----------+-----+------------+
| | | | | | | | | GBPm | | GBPm |
+--+-----+--------+-----+--------------+--------+-----------+------+----------+-----+------------+
| | | Revenue | | | | | | |
+--+-----+-----------------------------+--------+-----------+------+----------+-----+------------+
| | | Parcel services | | | | 172.3 | | 179.8 | |
+--+--------+--------------------+--+--------+---------------------+----------+-----+------------+-----+
| | | Mail services | | | | 164.5 | | 137.3 | |
+--+--------+--------------------+--+--------+---------------------+----------+-----+------------+-----+
| | | Specialist | | | | 48.9 | | 41.5 | |
| | | services | | | | | | | |
+--+--------+--------------------+--+--------+---------------------+----------+-----+------------+-----+
| | | | | | | 385.7 | | 358.6 | |
+--+--------+--------------------+--+--------+---------------------+----------+-----+------------+-----+
| | | | | | | | | | | |
+--+--------+--------+--------+-----------+-----------+------------+----------+-----+---+-----------+
| | | Operating profit | | | | | | |
+--+--------+-----------------------------+-----------+------------+----------+-----+---+-----------+
| | | Parcel services - before exceptional items | 16.4 | | 15.4 |
+--+--------+------------------------------------------------------+----------+-----+------+
| | | - exceptional items | (0.8) | | - |
+--+--------+------------------------------------------------------+----------+-----+------+
| | | | | 15.6 | | 15.4 |
+--+--------+--------------------------------------+---------------+----------+-----+------+
| | | Mail services - before exceptional items | 11.6 | | 10.0 |
+-----+--------+---------------------------------------------------+----------+-----+---------+
| | | - exceptional items | - | | - |
+-----+--------+---------------------------------------------------+----------+-----+---------+
| | | | 11.6 | | 10.0 |
+-----+--------+---------------------------------------------------+----------+-----+---------+
| | | Specialist services - before exceptional items | 2.5 | | 1.3 |
+-----+--------+---------------------------------------------------+----------+-----+---------+
| | | - exceptional items | (0.3) | | - |
+-----+--------+---------------------------------------------------+----------+-----+---------+
| | | | | | 2.2 | | 1.3 |
+-----+--------+--------------------------------+--------+---------+----------+-----+---------+
| | | | | | | | |
+-----+--------+--------------------------------+--------+---------+----------+-----+---------+
| | | Central costs | | | (12.8) | | (12.2) |
+-----+--------+--------------------------------+--------+---------+----------+-----+---------+
| | | | | | 16.6 | | 14.5 |
+-----+--------+--------------------------------+--------+---------+----------+-----+---------+
| | | | | | | | | | |
+--+--+--+--+--+--+--+--+--+--+--+--+--+--+--+--+--+--+--+--+------+----------+--+--+---+--+--+--+--+--+
+--+---+-------------------------------------------+----------+--+----------+
| |2 | Exceptional items |
+--+---+--------------------------------------------------------------------+
| | | |
+--+---+--------------------------------------------------------------------+
| | | | 2009 | | 2008 |
+--+---+-------------------------------------------+----------+--+----------+
| | | | GBPm | | GBPm |
+--+---+-------------------------------------------+----------+--+----------+
| | | | | | |
+--+---+-------------------------------------------+----------+--+----------+
| | | Operations restructure | 1.1 | | 0.7 |
+--+---+-------------------------------------------+----------+--+----------+
| | | FedEx termination costs | - | | (0.7) |
+--+---+-------------------------------------------+----------+--+----------+
| | | Exceptional taxation charge | 1.9 | | - |
+--+---+-------------------------------------------+----------+--+----------+
| | | | 3.0 | | - |
+--+---+-------------------------------------------+----------+--+----------+
+--+---+----+-------------------------------------------------------+----+----+----+----+
| | | Operations restructure | |
+--+---+-----------------------------------------------------------------+---------+
| | | | |
+--+---+-----------------------------------------------------------------+---------+
| | | During the year ended 31 March 2008, the board approved a 3 year change |
| | | programme, designed to both integrate the different parts of the Group |
| | | more, and to improve the network infrastructure. This resulted in a |
| | | number of structural changes in operational and sales management, and the |
| | | regionalisation of customer care centres, the costs of which were |
| | | GBP0.7m. |
| | | Further structural changes were made during the year ended 31 March 2009, |
| | | including the closure of a number of owned and franchised operational |
| | | sites (with relevant operations transferred to nearby locations), and the |
| | | restructuring of some central functions. This resulted in one-off |
| | | redundancy costs of GBP0.8m and property related costs of GBP0.3m. |
| | | |
+--+---+---------------------------------------------------------------------------+
| | | FedEx termination costs |
+--+---+--------------------------------------------------------------------------------+
| | | |
+--+---+--------------------------------------------------------------------------------+
| | | Following the cessation of the contract from 30 April 2007 to act as |
| | | FedEx's global service participant in the UK, anticipated exit costs of |
| | | GBP1.3m were provided for, including one-off redundancy and management |
| | | restructuring costs, vehicle livery removal, uniform replacement and |
| | | legal expenses. |
| | | During the year ended 31 March 2008, a surplus provision of GBP0.7m was |
| | | released, following a number of successful management initiatives, |
| | | including redeployment of a number of staff, a phased roll-out programme |
| | | of the new fleet complete with new livery, and a number of other locally |
| | | driven site-based initiatives. |
| | | |
+--+---+---------------------------------------------------------------------------+
| | | Exceptional taxation charge |
+--+--------+-----------------------------------------------------------------+
| | | |
+--+--------+-----------------------------------------------------------------+
| | | The exceptional taxation charge comprises a GBP2.2m write-off |
| | | (2008: GBPnil) of a deferred taxation balance resulting from |
| | | the phased abolition of UK Industrial Building Allowances |
| | | ('IBAs') following enactment of the Finance Act 2008, offset by |
| | | GBP0.3m (2008: GBPnil) taxation relief in respect of the |
| | | exceptional operations restructuring costs included above. |
| | | |
+--+--------+-----------------------------------------------------------------+
| | 3 | Earnings per share | |
+--+--------+-------------------------------------------------------+---------+
| | | | |
+--+--------+-------------------------------------------------------+---------+
| | | Basic earnings per share have been calculated by dividing the |
| | | profit for the year by the weighted average number of ordinary |
| | | shares in issue for the year ended 31 March 2009 of 54,049,420 |
| | | (2008: 54,068,346). Diluted earnings per share have been |
| | | calculated by adjusting the weighted average number of ordinary |
| | | shares for the effect of the exercise of share options, |
| | | increasing the number of shares to 55,107,864 (2008: |
| | | 55,480,127). |
+--+--------+-----------------------------------------------------------------+
| | 4 | Restatement |
+--+--------+-----------------------------------------------------------------+
| | | |
+--+--------+-----------------------------------------------------------------+
| | | During the year the Group reviewed the categorisation of |
| | | depreciation costs. As a result, GBP3.9m of depreciation cost |
| | | which in the results for the year ended 31 March 2008 had |
| | | previously been included in administrative expenses, has been |
| | | re-classified within cost of sales, reflecting the purpose in |
| | | which these assets are used. |
| | | |
+--+---+----+-------------------------------------------------------+----+----+----+----+
+--+---+-------------------------------------------------------------------+
| |5 | General information |
+--+---+-------------------------------------------------------------------+
| | | |
+--+---+-------------------------------------------------------------------+
| | | The above figures have been extracted from the Group's full |
| | | financial statements for the year ended 31 March 2009, which will |
| | | be delivered to the Registrar of Companies. Those financial |
| | | statements carry an unqualified audit opinion. They have been |
| | | prepared in accordance with the Companies Act 1985 and |
| | | International Financial Reporting Standards as adopted by the |
| | | European Union. The accounting policies, which have been applied |
| | | consistently to all the years presented, are set out in those |
| | | financial statements. These extracts do not constitute statutory |
| | | accounts within the meaning of section 240 of the Companies Act |
| | | 1985. |
+--+---+-------------------------------------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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