On 1 December, MaltaPost plc published its preliminary results for the financial year ended 30 September 2011. The postal operator registered the fourth consecutive annual growth in revenue since listing its shares in January 2008. During the year under review, the Company reported a 4.9% rise in turnover to just under €21.4 million on the back of a continued increase in cross-border traffic volumes and logistic services which offset the downward trend in traditional mail volumes.
However, MaltaPost incurred €18.64 million in operating costs and depreciation charges representing a 6.6% rise over the previous years’ figure. This was attributed to higher cross-border mail volumes and labour costs. The cost to income ratio deteriorated to 87% (Sept 2010: 85.7%) but the company indicated that this is in line with industry standards.
After accounting for net interest receivable of €286,000, MaltaPost’s pre-tax profit during the year amounted to just over €3 million representing a 4.8% drop from the comparable figure last year. The drop in profitability was due to a positive foreign exchange movement in 2010 which did not recur during the financial year under review.
MaltaPost incurred a tax charge of €1.1 million which led to a profit for the year of €1.9 million representing a drop of 8.7% from the profitability of the previous financial year.
On the balance sheet side, it is noteworthy to highlight the fact that during the financial year under review, the Company introduced leverage for the first time with total borrowings of €4 million. These funds, together with internally generated cash, were used to fund the acquisition of its Head Office in Marsa as well as another building in Valletta which the Company intends to use as a postal museum. These acquisitions are the main components of the €6.5 million rise in ‘Property, plant and equipment’ to €9.16 million. Despite these acquisitions, the Company maintained a healthy cash position of €3.8 million.
The Directors recommended a net dividend of €0.04 per share (unchanged from last year) payable to all shareholders as at close of trading on Monday 12 December 2011. Eligible shareholders have the option to take up the dividend either in cash or in shares at an attribution price of €0.98 per share.
Once the dividend is approved at the Annual General Meeting scheduled for 17 January 2012, the dividend will be paid on 30 January 2012
In conclusion, MaltaPost confirmed that it is well prepared to face the challenges from a rapidly evolving market and will continue to strengthen its presence in the postal and logistics market.
Download a copy of the MaltaPost plc Preliminary Annual Results for the year ended 30 September 2011.