On 15 February, MaltaPost plc published its Interim Directors’ Statement to update the market on its performance since the start of the current financial year on 1 October 2011. The Directors explained that during the period under review the Company continued to operate against a general subdued sentiment which is expected to remain so in the short to medium term. Moreover, the negative impact of austerity measures and the lack of economic growth in some economies continues to dampen expectations of an immediate turnaround.
Furthermore, the Directors revealed that revenue from postal activities for the period under review increased. Nonetheless, the local letter service operation remained a loss-making activity due to the current rates which are not commercially viable. On the costs side, MaltaPost incurred higher operating costs thereby resulting in profit levels lower than for the same period last year.
The announcement also indicated that the re-branding exercise is now complete whilst the branch upgrading programme is well in progress.
Looking ahead, the Directors are confident that the Company will deliver a solid performance during the first half of its financial year ending 31 March 2012 despite the difficult market conditions. However, the Directors are expecting a reduced profit level from that reported in the first half of the previous financial year when MaltaPost generated a pre-tax profit of €1.1 million.