MaltaPost plc - Full-Year Results

Wednesday, December 10th, 2014

On 9 December 2014, MaltaPost plc published its preliminary full-year results for the financial year ended 30 September 2014.

Performance Overview

Turnover during the period under review grew by 9.6% to a record €23.7 million on the back of the continued growth in the e-commerce business as well as the revision of certain tariffs as from January 2014. These also offset the declining trend in traditional mail volumes. Nonetheless, this revenue growth was partly offset by a 3.3% increase in costs of sales (largely comprising employee wages) to €11.3 million. It is also noteworthy to highlight that direct costs are at their highest level.

As a result, the gross profit of MaltaPost during the financial year under review increased by 16.1% to €12.4 million with the gross profit margin similarly improving to reach its highest level of 52.3% from 49.4% in the previous financial year.

Administrative expenses also increased by 14.9% to €9.2 million largely reflecting the increased costs relating to cross-border mail delivery. Meanwhile, depreciation and amortisation decreased by 24.4% to €0.7 million. This led to a 43.9% increase in operating profit to €2.5 million.

After accounting for €0.2 million in finance income, MaltaPost’s pre-tax profit for the financial year ended 30 September 2014 amounted to €2.7 million representing a 37.6% increase from the previous year’s comparable figure. The tax expense amounted to €0.94 million (marginal tax rate of 34%), representing a 35.4% increase from the previous comparable charge. As a result, the net profit, for the twelve months ended 30 September 2014, improved by 38.7% to just under €1.8 million which translates into an earnings per share of €0.0515 (FY2013: €0.0384).

The Statement of Financial Position shows a 1.2% increase in total assets to €30.8 million largely reflecting the 14.3% increase in the Company’s property, plant and equipment to €11.8 million, the 7.1% rise in available-for-sale financial assets to €3.3 million and the 29.6% jump in trade receivable to €6.9 million. These were partly offset by the decline in the Company’s liquidity levels. Furthermore, total liabilities decreased by 8.9% to €12.6 million mainly due to 10.4% reduction in trade payables to €11 million. It is also noteworthy to highlight that the Company remains debt free. As a result, total equity increased by 9.5% to €18.2 million reflecting the reinvested dividend through the scrip dividend of January 2014.

Outlook

The Directors explained that the Company is expected to remain focused on securing a reasonable share of the growing parcels market whilst enhancing and consolidating a diversified portfolio of services to counter the irreversible decline in traditional letter mail volumes. In the meantime, the high fixed-cost base of the Universal Service Obligation needs to be re-evaluated so as to ensure its long-term sustainability.

Dividend

The Directors recommended an unchanged net dividend of €0.04 per share to all shareholders as at the close of trading on 15 December representing a payout ratio of 78%. This dividend, which is subject to shareholder approval at the upcoming Annual General Meeting (AGM) scheduled to be held on 16 January 2015, will be paid on 30 January 2015.

The Board is also recommending to the AGM that shareholders will have the option to receive the dividend either in cash or by the issue of new shares at the attribution price of €1.16 per share.

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MaltaPost plc – Preliminary full-year results for the financial year ended 30 September 2014.

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