MaltaPost plc - Interim Results

On 9 May, MaltaPost plc published its half-year results covering the six months ended 31 March 2014.

Performance Overview

During the period under review, revenue grew by 3.8% to a record €11.7 million as the continued decline in traditional mail was mitigated by the review in certain tariffs that came into effect on 1 January 2014. Furthermore, a number of initiatives taken by the Company resulted in an increase in parcel deliveries.

Meanwhile, net operating expenses only increased by 1.7% to €10.6 million largely reflecting the higher staff and transport costs which were only partially mitigated by a decrease in depreciation and amortisation.

As a result, the Company’s operating profit grew by 28.6% to €1.1 million (the highest level in the last three years) with the operating profit margin also improving to 9.8% compared to 7.9% for the previous comparable period.

After accounting for interest receivable of €0.09 million, MaltaPost’s pre-tax profit for the period under review amounted to €1.2 million (also the highest level in the last three years) representing a 21.3% increase over the previous year’s comparable figure. The tax charge amounted to €0.4 million, leading to a net profit of €0.8 million (also a 3-year high) representing a 23% rise from the comparable figure for the interim period ended 31 March 2013. This translates into an earnings per share figure of €0.0234 (HY2013: €0.0197).

The statement of financial position shows total assets of €29.9 million (marginally lower compared to the balance as at 30 September 2013), no debt and shareholders’ funds of €17.2 million translating into a net asset value per share of €0.4881 (September 2013: €0.4861).

Outlook   

Looking ahead, the Directors explained that the postal sector continues to evolve as a result of declining volumes and increased competition in the parcel business market. Nonetheless, while MaltaPost remains committed to improve efficiency and to contain costs, the decline in revenue from the core letter mail activity is a reality and in order to ensure the fulfilment of a sustainable Universal Service, MaltaPost needs to be equitably remunerated for its work in this sector.

Additionally, the Directors noted that the Company remains on the lookout for new opportunities that add further value to its product offering. In line with this objective, MaltaPost continues to invest in its infrastructure, operations and processes that optimise its network.

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MaltaPost plc – Half-Year Report for the period ended 31 March 2014