International Distribution Services (IDS) has reported full-year revenue of £12.0bn, down 5.3%. The drop was driven by performance at Royal Mail, where revenue fell 13%, as it struggled due to industrial action and a decline in volumes across parcels and letters. GLS saw revenue rise 10.2%, as higher prices more than offset a small dip in volumes.
There was an underlying operating loss of £71m at the Group level, driven by a £419m loss for Royal Mail – though that wasn’t as bad as analysts had forecast. Â Reported figures were impacted by an impairment charge of £539 million as the carrying value of Royal Mail was reduced.
There was a free cash outflow of £89m, compared to an inflow of £420m the prior year. Net debt, including leases, rose from £985m to £1.3bn.
The pay agreement for Royal Mail workers is awaiting sign-off from Union members. For the coming year, IDS is aiming to bring underlying operating profit into positive territory.
The board has not recommended a final dividend.
The shares fell 4.2% in early trading.
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IDS key facts
Forward price/sales ratio (next 12 months): 0.17
Ten year average forward price/earnings ratio: 0.37
Prospective dividend yield (next 12 months): 6.6%
All ratios are sourced from Refinitiv. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
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