MaltaPost plc - Full-Year Results

Monday, December 17th, 2018

On 17 December 2018, MaltaPost plc published its preliminary full-year results for the financial year ended 30 September 2018.

Performance Overview

During the financial year under review, MaltaPost plc registered a 4.5% increase in turnover to a record €40.17 million reflecting growth across services related to international mail, parcels and document management. However, most of the increase in revenues translated into higher overheads as total operating costs increased by 6.1% to €37.7 million, leading to an operating profit of €2.47 million which is 15% below the corresponding figure of €2.91 million registered during the previous financial year ended 30 September 2017. Excluding depreciation and amortisation charges of €0.96 million, earnings before interest, tax, depreciation and amortisation (EBITDA) contracted by 7.1% to €3.44 million.

After taking into consideration a marginal finance income of €0.16 million, MaltaPost’s pre-tax profits decreased by 13.7% to €2.64 million when compared to the previous comparable period. The tax charge for the year amounted to €0.91 million, which is 12.8% less than the €1.04 million charge incurred in the previous financial period. Accordingly, post-tax profits contracted by 14.2% to €1.73 million (FY2016/17: €2.01 million). This translates into an earnings per share of €0.0459 (FY2016/17: €0.0538).

The Statement of Financial Position shows a 15.5% increase in total assets to €47.93 million (30 September 2017: €41.5 million) largely reflecting the 20.1% increase in property, plant and equipment to €17.29 million following a revaluation exercise of owned properties as well as the significant increase in cash balances to €17.3 million (September 2017: €10.87 million). On the other hand, total liabilities grew by 20.4% to €21.51 million mainly due to the almost 25% increase in trade and other payables to €18.52 million. Overall, the Company’s equity base expanded by 11.7% to €26.42 million which translates into a net asset value per share of €0.702 (30 September 2017: €0.628).

Dividend

The Directors recommended an unchanged final net dividend of €0.04 per share to all shareholders as at close of trading on Thursday 10 January 2019. The dividend will be paid on 13 March 2019 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on 13 February 2019.

Outlook

In their commentary, the Directors of MaltaPost noted that the company remains committed to its Universal Service Obligation within a revised tariff structure. In this respect, the company is working with the Malta Communications Authority (MCA) with the aim of achieving a revised tariff structure during the next financial year. The Directors further commented that the timely introduction of a revised tariff structure is vital given that the postal industry is labour and transaction intensive which also necessitates an extensive delivery and retail network so as to remain efficient. At the same time, MaltaPost needs to be in a position to invest so as to respond effectively to the challenges presented by the market in general and those unregulated operators in particular.

Furthermore, the Directors explained that they are confident that the continued diversification into logistics, document management and financial services, while maintaining a core letter mail service bodes well for the future so as to provide a fair return on investment to shareholders.

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MaltaPost plc – Preliminary full-year results for the financial year ended 30 September 2018.

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