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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| UK Mail Group | LSE:UKM | London | Ordinary Share | GB0001576163 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 440.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
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TIDMUKM
RNS Number : 3680W
UK Mail Group PLC
18 November 2010
18 November 2010
UK MAIL GROUP plc
INTERIM RESULTS
For the 6 months ended 30 September 2010
INCREASED REVENUE AND PROFITS, NEW PRODUCTS GAINING TRACTION
Highlights
· Group revenues up 1.3% to GBP190.7m (2009: GBP188.2m)
o Mail revenues up 1.5% to GBP85.9m (2009: GBP84.6m)
o Parcels revenues up 1.3% to GBP81.0m (2009: GBP80.0m)
· Group profit before tax up 4.8% to GBP7.4m (2009: GBP7.0m)
· Strong balance sheet, net cash at period end of GBP8.5m (2009: GBP3.6m)
· Interim dividend of 6.4p per share (2009: 6.4p)
· Retail Logistics launched during the period and making good progress
· New Packets product winning major customers
Guy Buswell, Chief Executive Officer of UK Mail, said:-
"The Group has delivered a satisfactory performance in the first half, with
continued revenue and profit growth and our new products and services making
good progress.
In Mail, we are targeting revenue growth progression in the second half, as the
impact of new customer wins and growth in Packets, together with additional
volumes from existing customers, more than offset the ongoing overall decline in
the UK transactional mail market. In Parcels, the continued progress of our
Retail Logistics service should provide further growth opportunities in the
second half and there are some signs that the general pricing environment is
improving. As always, market conditions for the balance of the year remain hard
to predict and the final three months of the calendar year represent the key
trading period for our business.
Overall the Group is in a good position, being well financed, with a strong
presence in all our chosen markets, with increasing efficiency being achieved in
our network, and new products and services starting to gain traction."
For further information, please contact:
+--------------------------------------+------------------------+
| UK Mail Group plc | |
+--------------------------------------+------------------------+
| Guy Buswell, Chief Executive | 0121 335 1111 |
| Officer | |
+--------------------------------------+------------------------+
| Steven Glew, Group Finance | 01753 706 070 |
| Director | |
| | |
+--------------------------------------+------------------------+
| MHP Communications | |
+--------------------------------------+------------------------+
| John Olsen | 020 7357 9477 |
| Ian Payne | |
| Giles Robinson | |
+--------------------------------------+------------------------+
Introduction
The Group delivered a satisfactory performance in the first half, with continued
revenue and profit growth.
Our Mail business increased its revenues, although profit was reduced compared
to the prior year as the continued competitive pricing environment led to a
reduction in the operating margin. We saw good progress from our new product
areas of imail and packets and we anticipate that these will have a beneficial
impact on operating margins going forward.
Parcels revenues and profits have grown compared to the prior year. Our
continued focus on customer service and operational efficiency, combined with
the successful launch of our Retail Logistics service, were the key factors in
this performance.
In our Courier business, previous contract wins helped deliver good revenue
growth. The operating margin has reduced however, partly reflecting the very
strong performance in the same period last year, leading to a reduction in
operating profit in this division.
Our Pallets business has the most exposure to wider economic conditions and has
consequently seen its revenues decline. Strong operational management has,
however, led to an increase in operating profits.
Overall, Group revenues at GBP190.7m were up 1.3% compared to the prior year and
Group profit before tax at GBP7.4m was up 4.8%.
Our financial position remains strong, with net cash at the period end of
GBP8.5m, compared to GBP3.6m as at 30 September 2009.
Results
The results can be summarised as follows:
+----------------------------+--------+----------+-------+----------+--------+
| | Six months ending 30 September |
+----------------------------+-----------------------------------------------+
| | 2010 | | 2009 | | Inc % |
| | GBPm | | GBPm | | |
+----------------------------+--------+----------+-------+----------+--------+
| | | | | | |
+----------------------------+--------+----------+-------+----------+--------+
| Group revenue | 190.7 | | 188.2 | | 1.3% |
+----------------------------+--------+----------+-------+----------+--------+
| | | | | | |
+----------------------------+--------+----------+-------+----------+--------+
| Operating profit | 7.5 | | 7.1 | | 4.3% |
+----------------------------+--------+----------+-------+----------+--------+
| Net finance costs | (0.1) | | (0.1) | | - |
+----------------------------+--------+----------+-------+----------+--------+
| Profit before taxation | 7.4 | | 7.0 | | 4.8% |
+----------------------------+--------+----------+-------+----------+--------+
| Taxation | (2.1) | | (2.0) | | (4.3)% |
+----------------------------+--------+----------+-------+----------+--------+
| Profit after taxation | 5.3 | | 5.0 | | 4.9% |
+----------------------------+--------+----------+-------+----------+--------+
| | | | | | |
+----------------------------+--------+----------+-------+----------+--------+
| Basic earnings per share | 9.6p | | 9.2p | | 4.3% |
+----------------------------+--------+----------+-------+----------+--------+
Revenue and operating profit are analysed as follows:
+---------------+---------+----------+--------+-+--------+-+-------+----------+-------+----------+---------+
| | Revenue | | Operating Profit |
+---------------+----------------------------------------+-+-----------------------------------------------+
| | 2010 | | 2009 | | | | 2010 | | 2009 | | |
| | | | | | Inc/ | | GBPm | | GBPm | | Inc/ |
| | GBPm | | GBPm | | | | | | | | |
| | | | | | (Dec) | | | | | | (Dec) |
| | | | | | | | | | | | |
| | | | | | % | | | | | | % |
+---------------+---------+----------+--------+-+--------+-+-------+----------+-------+----------+---------+
| | | | | | | | | | | | |
+---------------+---------+----------+--------+-+--------+-+-------+----------+-------+----------+---------+
| Mail | 85.9 | | 84.6 | | 1.5% | | 5.6 | | 5.9 | | (5.6)% |
+---------------+---------+----------+--------+-+--------+-+-------+----------+-------+----------+---------+
| Parcels | 81.0 | | 80.0 | | 1.3% | | 6.5 | | 6.3 | | 1.7% |
+---------------+---------+----------+--------+-+--------+-+-------+----------+-------+----------+---------+
| Courier | 9.5 | | 8.7 | | 9.3% | | 1.0 | | 1.2 | | (17.5)% |
+---------------+---------+----------+--------+-+--------+-+-------+----------+-------+----------+---------+
| Pallets | 14.3 | | 14.9 | | (4.2)% | | 0.9 | | 0.8 | | 8.5% |
+---------------+---------+----------+--------+-+--------+-+-------+----------+-------+----------+---------+
| Total | 190.7 | | 188.2 | | 1.3% | | 14.0 | | 14.2 | | (2.5)% |
+---------------+---------+----------+--------+-+--------+-+-------+----------+-------+----------+---------+
| | | | | | | | | | | | |
+---------------+---------+----------+--------+-+--------+-+-------+----------+-------+----------+---------+
| Central costs | | | | | | | (6.5) | | (7.1) | | 9.3% |
+---------------+---------+----------+--------+-+--------+-+-------+----------+-------+----------+---------+
| Operating profit | | 7.5 | | 7.1 | | 4.3% |
+---------------+---------+----------+--------+-+--------+-+-------+----------+-------+----------+---------+
Mail
Mail showed further growth in revenues. As expected, the rate of growth has
moderated from the high levels previously achieved, but the business enjoyed
continued success in attracting good levels of new business as well as retaining
and generating further mail growth from existing customers. As a result,
revenues rose 1.5% to GBP85.9m (2009: GBP84.6m).
Within the overall UK mail market there has been a decline in transactional
volumes of some 4% per annum in recent years. An important factor in the
continued progress of our Mail business is therefore product innovation, to open
up new segments of the mail market and extend our reach. We expect that this,
together with further volumes from new and existing customers and an increase in
marketing mail as the UK economy slowly recovers, should more than offset the
overall market decline in transactional mail. As previously indicated, we expect
revenue growth in our Mail business to be weighted towards the second half of
this financial year.
Mail operating profits in the first half were down 5.6% to GBP5.6m (2009:
GBP5.9m) and the operating margin was 6.5% (2009: 7.0%). Pricing in the
transactional mail market is very competitive. In the past, we have been able
to offset pricing pressures through the increased economies of scale that came
from exponential volume growth, but as the market matures, this naturally
becomes more difficult to achieve. However, we have two major new products that
are now gaining traction, which we expect to have a beneficial impact on
operating margins going forward.
Our Packets product, launched this year, enables us to offer customers a price
competitive service in a sector that was previously difficult for us to access.
The packets market is the fastest growing segment of the postal market, mainly
due to the growth in internet based shopping. We currently handle up to 15,000
packets per night and have recently added three major new customers to this
service, confirming our views on the growth potential for this product and
establishing us as a serious player in the cGBP1.5bn p.a. UK packets market. The
next phase for us is to widen the service offering for smaller customers.
'imail', our web-to-print postal service, now includes appointment cards,
'economy' black and white printing and mailing list production, and is
continually being developed to support its market leadership. 'imail' is now
achieving daily volumes of up to 40,000 items, compared to up to 15,000 a year
ago. This is a new concept in the UK mail market which is taking time to gain
traction. We have now created a very strong platform with a good pipeline of
opportunities and would expect to continue to grow revenues and profits.
The Government has recently introduced the Bill for the privatisation of Royal
Mail. We believe that the UK postal market needs a successful, commercially
focused and efficient Royal Mail operating within a regulated framework where
competition benefits the customer and allows the overall mail industry to
flourish. If privatisation achieves this, then UK Mail supports the proposal.
Postcomm's recently announced review of Royal Mail's pricing will unfortunately
result in an increase in prices to all customers. We understand Royal Mail will
set both wholesale and retail prices in February/March 2011 for implementation
in May 2011. We currently expect the underlying impact on our mail margins to
be minimal.
Parcels
Revenues in Parcels, which comprises the Group's business-to-business,
business-to-consumer and international parcel delivery service, were up 1.3% for
the period to GBP81.0m (2009: GBP80.0m). Operating profit increased by 1.7% to
GBP6.5m (2009: GBP6.3m) with the operating margin at 7.9% (2009: 7.9%).
Whilst the pricing environment remains competitive, which has placed pressure on
Parcels operating margins, this has been offset by our continued efforts towards
improving the efficiency and effectiveness of our Parcels operation. Parcels
volumes increased during the period by 4.3% over the previous year. We continue
to be successful in winning new Parcels customers as a result of our high
service levels, low cost network and strong brand in the market.
We have actions underway to reduce our cost base still further. A key element
of these plans is further investment in our I.T. infrastructure to drive
increased efficiencies, which will be implemented over the next year. This will
involve a completely new internet platform to support business growth and to
drive down costs, and the launch of new technologies to provide industry-leading
customer service.
In May 2010 we launched a new range of Retail Logistics services tailored to the
specific needs of retailers and targeted at the extensive list of retail
customers we have access to through our parcels, mail and courier businesses.
This product is making good progress and we now have a number of major retailers
trading with us. We estimate this market to be worth GBP1.2bn, supporting our
view that this represents a significant growth opportunity for the business.
Courier
Revenues in our Courier business, which provides same-day delivery services,
increased 9.3% to GBP9.5m (2009: GBP8.7m). Operating margins however reduced to
10.5% (2009: 13.9%) leading to a reduction in operating profit to GBP1.0m (2009:
GBP1.2m). The decline in operating margin reflects, in part, the strong
performance in the same period last year and, in part, the costs of establishing
new capability within the wider Group.
We have developed a highly efficient nationwide courier network which has a
proven ability to support national contracts, which adds to our ability to offer
a fully integrated proposition and supports product development across the
Group.
Pallets
Revenues in our Pallets business, which provides a nationwide palletised goods
delivery service were down 4.2% for the period to GBP14.3m (2009: GBP14.9m).
This business is the most exposed of our operations to economic conditions. We
have however improved the efficiency of our operations and reduced costs,
leading to an improvement in the operating margin to 6.3% (2009: 5.5%). This
improved margin has more than offset the revenue decline, enabling us to
increase operating profit for the period by 8.5% to GBP0.9m (2009: GBP0.8m).
We see growth opportunities for this business as the economy recovers, driven by
further focus on sectors of the distribution market which can benefit from this
highly efficient method of palletised goods distribution.
Finance costs
Net interest payable remained at GBP0.1m (2009: GBP0.1m).
Cash Flow and Balance Sheet
The Group has a strong balance sheet with net cash at the end of the period of
GBP8.5m (2009: GBP3.6m).
Net cash inflow from operating activities totalled GBP3.2m (2009: GBP5.1m). Net
cash outflow for the period was GBP8.6m (2009: GBP7.3m) which included GBP6.2m
(2009: GBP3.1m) of cash consumed in working capital, reflecting the normal first
half trend in our business. We expect a substantially smaller outflow for the
year as a whole.
Capital expenditure for the period was GBP4.1m (2009: GBP4.4m). The capital
expenditure for the period includes GBP1.4m on IT, as we continue to develop our
systems infrastructure, and GBP1.7m on our network.
Earnings per share
Basic earnings per share increased 4.3% to 9.6p (2009: 9.2p).
Dividend
The Board has declared an unchanged Interim Dividend of 6.4p (2009: 6.4p), to be
paid on 14 January 2011 to shareholders registered on 3 December 2010. The Board
will consider the full year dividend at the year end, and intends to pursue a
progressive dividend policy.
CURRENT TRADING & OUTLOOK
Market conditions for the balance of the year remain hard to predict and, as
always, the final three months of the calendar year represent the key trading
period for our business.
In Mail, whilst the pricing environment is likely to remain competitive, we
expect revenue growth to progress in the second half of the financial year as
the impact of new customer wins and growth in Packets, together with additional
volumes from existing customers, more than offset the overall decline in
transactional volumes in the UK mail market.
In Parcels, there are signs that the pricing environment is improving which
should help us achieve profitable growth. The continued progress of our Retail
Logistics service will provide further growth opportunities.
Overall the Group is in a good position, being well financed, with a strong
presence in all our chosen markets, with increasing efficiency being achieved in
our network, and new products and services starting to gain traction.
Guy Buswell
Chief Executive Officer
ADDITIONAL DISCLOSURES
Principal risks and uncertainties facing the business
UK Mail's business and share price may be affected by a number of risks, not all
of which are within our control. The process UK Mail has in place for
identifying, assessing and managing risks is set out in the Corporate Governance
Report on page 21 of the 2010 Annual Report and Accounts. The specific principal
risks and uncertainties that may affect the Group's performance, together with
relevant mitigating factors as identified by the Group's risk management process
were discussed on pages 69 and 70 of the Group's Annual Report and Accounts for
the 2010 financial year. These included market, credit, regulatory, price,
liquidity, capital and foreign exchange risk. It is considered that these still
remain the most likely areas of potential risk and uncertainty, with the
position unchanged from that set out in the 2010 Annual Report and Accounts.
Cautionary statement
This interim announcement contains certain forward-looking statements, which
have been made by the directors in good faith based on the information available
to them up to the time of the approval of this report and such information
should be treated with caution due to the inherent uncertainties, including both
economic and business risk factors, underlying any such forward-looking
information.
Going concern
As stated in note 2 to the condensed consolidated interim financial statements,
the directors are satisfied that the Group has sufficient resources to continue
in operation for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the condensed consolidated interim financial
statements.
+-------+-------+-------+------+------+-----------+----------+----------+-----------+----------+----------+---------+----------+-+
| Consolidated Statement of Comprehensive Income | | | | |
+-----------------------------------------------------------------------+----------------------+----------+--------------------+-+
| for the six months ended 30 | | | | | | | |
| September 2010 | | | | | | | |
+------------------------------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | | | | | | | | |
+-------+-------+-------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | | | | | | | | | | |
+-------+-------+-------+------+------+----------------------+----------+-----------+----------+----------+---------+----------+-+
| | | | | | Unaudited | | | Unaudited | | | Audited | | |
+-------+-------+-------+------+------+-----------+----------+----------+-----------+----------+----------+---------+----------+-+
| | | | | | Six | | | Six | | | Year | | |
| | | | | | months | | | months | | | to | | |
| | | | | | to | | | to | | | | | |
+-------+-------+-------+------+------+-----------+----------+----------+-----------+----------+----------+---------+----------+-+
| | | | | | 30 | | | 30 | | | 31 | | |
| | | | | | September | | | September | | | March | | |
+-------+-------+-------+------+------+-----------+----------+----------+-----------+----------+----------+---------+----------+-+
| | | | | | 2010 | | | 2009 | | | 2010 | | |
+-------+-------+-------+------+------+-----------+----------+----------+-----------+----------+----------+---------+----------+-+
| | | | |Note | GBPm | | | GBPm | | | GBPm | | |
+-------+-------+-------+------+------+-----------+----------+----------+-----------+----------+----------+---------+----------+-+
| | | | | | | | | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Continuing operations | | | | | | | | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Revenue | | 5 | 190.7 | | 188.2 | | 385.2 | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Cost of sales | | | (166.8) | | (161.6) | | (333.5) | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Gross profit | | | 23.9 | | 26.6 | | 51.7 | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Administrative | | | (16.4) | | (19.5) | | (33.8) | |
| expenses | | | | | | | | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Operating profit | | 5 | 7.5 | | 7.1 | | 17.9 | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Finance costs | | | (0.1) | | (0.2) | | (0.2) | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Finance income | | | - | | 0.1 | | 0.1 | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Profit before | | | 7.4 | | 7.0 | | 17.8 | |
| taxation | | | | | | | | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Taxation | | 11 | (2.1) | | (2.0) | | (5.1) | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Profit for the period | | | 5.3 | | 5.0 | | 12.7 | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | | | | | | | | |
+-------+-------+-------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Total comprehensive income | | 5.3 | | 5.0 | | 12.7 | |
| for the period | | | | | | | |
+------------------------------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | | | | | | | | |
+-------+-------+-------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Total comprehensive income | | | | | | | |
| attributable to: | | | | | | | |
+------------------------------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Equity holders of the | | | 5.3 | | 5.0 | | 12.7 | |
| company | | | | | | | | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | | | | | | | | |
+-------+-------+-------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Basic earnings per | | 12 | 9.6p | | 9.2p | | 23.4p | |
| share | | | | | | | | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Diluted earnings per | | 12 | 9.3p | | 9.0p | | 23.0p | |
| share | | | | | | | | |
+-----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | | | | | | | | |
+-------+-------+-------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| The notes on the following pages form an integral part of these condensed consolidated interim financial | |
| statements | |
+------------------------------------------------------------------------------------------------------------------------------+-+
| | | | | | | | | | | |
+-------+-------+-------+------+------+-----------+----------+----------+-----------+----------+----------+---------+----------+-+
+------+-------+-------+------+------+-----------+----------+----------+-----------+----------+----------+---------+----------+-+
| Consolidated Balance Sheet | | | | |
+----------------------------------------------------------------------+----------------------+----------+--------------------+-+
| at 30 September 2010 | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | | | Unaudited | | | Unaudited | | | Audited | | |
+------+-------+-------+------+------+-----------+----------+----------+-----------+----------+----------+---------+----------+-+
| | | | | | 30 | | | 30 | | | 31 | | |
| | | | | | September | | | September | | | March | | |
+------+-------+-------+------+------+-----------+----------+----------+-----------+----------+----------+---------+----------+-+
| | | | | | 2010 | | | 2009 | | | 2010 | | |
+------+-------+-------+------+------+-----------+----------+----------+-----------+----------+----------+---------+----------+-+
| | | | |Note | GBPm | | | GBPm | | | GBPm | | |
+------+-------+-------+------+------+-----------+----------+----------+-----------+----------+----------+---------+----------+-+
| Assets | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Non-current assets | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Goodwill | | 6 | 9.5 | | 9.5 | | 9.5 | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Intangible assets | | 6 | 2.8 | | 1.9 | | 2.0 | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Investment | | 6 | 1.0 | | 1.0 | | 1.0 | |
| properties | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Property, plant and | | 6 | 37.6 | | 39.3 | | 38.1 | |
| equipment | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Deferred tax assets | | | 0.5 | | 0.4 | | 0.6 | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | 51.4 | | 52.1 | | 51.2 | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Current assets | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Inventories | | | 0.2 | | 0.2 | | 0.2 | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Trade and other | | | 54.1 | | 52.0 | | 51.8 | |
| receivables | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Cash and cash | | 9 | 13.9 | | 10.7 | | 22.5 | |
| equivalents | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | 68.2 | | 62.9 | | 74.5 | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Liabilities | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Current liabilities | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Borrowings | | 9 | (1.8) | | (1.7) | | (1.8) | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Trade and other | | | (50.5) | | (48.5) | | (54.3) | |
| payables | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Current tax | | | (2.1) | | (2.0) | | (1.9) | |
| liabilities | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Provisions | | 10 | (0.2) | | (0.3) | | (0.1) | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | (54.6) | | (52.5) | | (58.1) | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Net current assets | | | 13.6 | | 10.4 | | 16.4 | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Non-current | | | | | | | | |
| liabilities | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Borrowings | | 9 | (3.6) | | (5.4) | | (5.0) | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Deferred tax | | | (3.1) | | (3.0) | | (3.6) | |
| liabilities | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Provisions | | 10 | (0.4) | | (0.4) | | (0.5) | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | (7.1) | | (8.8) | | (9.1) | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Net assets | | | 57.9 | | 53.7 | | 58.5 | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Shareholders' equity | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Ordinary shares | | 7 | 5.5 | | 5.5 | | 5.5 | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Share premium | | 7 | 16.6 | | 16.6 | | 16.6 | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Retained earnings | | | 35.8 | | 31.6 | | 36.4 | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| Total shareholders' | | | 57.9 | | 53.7 | | 58.5 | |
| equity | | | | | | | | |
+----------------------+------+------+----------------------+----------+----------------------+----------+--------------------+-+
| | | | | | | | | |
+------+-------+-------+------+------+-----------+----------+----------+-----------+----------+----------+---------+----------+-+
+------------------------------+-+----------+----+-----------+----------+----------+------------+----------+----------+---------+----------+--+
| Consolidated Statement of Cash Flows | | |
+-----------------------------------------------------------------------------------------------+------------------------------------------+--+
| for the six months ended 30 September 2010 | |
+------------------------------------------------------------------------------------------------------------------------------------------+--+
| | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| | | Unaudited | | | Unaudited | | | Audited | | |
+------------------------------+-----------------+-----------+----------+----------+------------+----------+----------+---------+----------+--+
| | | Six | | | Six months | | | Year | | |
| | | months | | | to | | | to | | |
| | | to | | | | | | | | |
+------------------------------+-----------------+-----------+----------+----------+------------+----------+----------+---------+----------+--+
| | | 30 | | | 30 | | | 31 | | |
| | | September | | | September | | | March | | |
+------------------------------+-----------------+-----------+----------+----------+------------+----------+----------+---------+----------+--+
| | | 2010 | | | 2009 | | | 2010 | | |
+------------------------------+-----------------+-----------+----------+----------+------------+----------+----------+---------+----------+--+
| | Note | GBPm | | | GBPm | | | GBPm | | |
+------------------------------+-----------------+-----------+----------+----------+------------+----------+----------+---------+----------+--+
| Continuing operations | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Operating activities | | | | | | |
+------------------------------------------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Cash generated from | 8 | 5.5 | | 7.8 | | 28.7 | |
| operations | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Finance income received | - | | 0.1 | | 0.1 | |
+------------------------------------------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Finance costs paid | (0.1) | | (0.2) | | (0.2) | |
+------------------------------------------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Taxation paid | (2.2) | | (2.6) | | (5.3) | |
+------------------------------------------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Net cash inflow from operating activities | 3.2 | | 5.1 | | 23.3 | |
+------------------------------------------------+----------------------+----------+-----------------------+----------+--------------------+--+
| | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Investing activities | | | | | | |
+------------------------------------------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Proceeds from disposal of | 6 | 0.1 | | - | | - | |
| property, plant and | | | | | | | |
| equipment | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Purchase of property, plant | 6 | (2.9) | | (4.0) | | (6.0) | |
| and equipment | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Purchase of intangible | 6 | (1.2) | | (0.4) | | (1.0) | |
| assets | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Net cash outflow from investing activities | (4.0) | | (4.4) | | (7.0) | |
+------------------------------------------------+----------------------+----------+-----------------------+----------+--------------------+--+
| | | | | | | | |
+--------------------------------+---------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Financing activities | | | | | | |
+------------------------------------------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Dividends paid to | 13 | (6.4) | | (5.9) | | (9.3) | |
| shareholders | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Repayment of finance lease | 9 | (0.4) | | (0.4) | | (0.8) | |
| liabilities | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Purchase of UK Mail shares | 7 | - | | (0.7) | | (0.7) | |
| by the ESOT | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Repayment of borrowings | 9 | (1.0) | | (1.0) | | (1.0) | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Net cash outflow from financing activities | (7.8) | | (8.0) | | (11.8) | |
+------------------------------------------------+----------------------+----------+-----------------------+----------+--------------------+--+
| | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Net (decrease)/increase in | 9 | (8.6) | | (7.3) | | 4.5 | |
| cash and cash equivalents | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Cash and cash equivalents at | 9 | 22.5 | | 18.0 | | 18.0 | |
| the start of the period | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| Cash and cash equivalents at | 9 | 13.9 | | 10.7 | | 22.5 | |
| the end of period | | | | | | | |
+------------------------------+-----------------+----------------------+----------+-----------------------+----------+--------------------+--+
| | | | | | | | |
+-------------------------------------------+----+----------------------+----------+-----------------------+----------+--------------------+--+
| | | | | | | | | | | | | |
+------------------------------+-+----------+----+-----------+----------+----------+------------+----------+----------+---------+----------+--+
+----------------------------+------+----------+----------+----------+----------+--+---+-+----------+----------+----+---+-+----------+----------+-+----------+----------+----------+
| Consolidated Statement of Changes in Shareholders' Equity (unaudited) | |
+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| for the six months ended 30 September 2010 | |
+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | |
+----------------------------+------+----------------------------------------------+---+----------------------------+---+-------------------------+----------+----------+----------+
| | | Attributable to equity holders of the company |
+----------------------------+------+----------------------------------------------------------------------------------------------------------------------------------------------+
| | | Ordinary | | | Share | | | Retained | | | Total | |
+----------------------------+------+----------+----------+----------+-------------------+----------+----------+----------+----------+----------+-----------------------+----------+
| | | shares | | | premium | | | earnings | | | equity | |
+----------------------------+------+----------+----------+----------+-------------------+----------+----------+----------+----------+----------+-----------------------+----------+
| |Note | GBPm | | | GBPm | | | GBPm | | | GBPm | |
+----------------------------+------+----------+----------+----------+-------------------+----------+----------+----------+----------+----------+-----------------------+----------+
| | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Balance as at 1 April 2010 | | 5.5 | | 16.6 | | 36.4 | | 58.5 |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Dividends paid to | 13 | - | | - | | (6.4) | | (6.4) |
| shareholders | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Employees' share option | | | | | | | | |
| scheme: | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| - value of employee | | - | | - | | 0.4 | | 0.4 |
| services | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| - tax on employee share | | - | | - | | 0.1 | | 0.1 |
| options | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Profit for the period | | - | | - | | 5.3 | | 5.3 |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Balance as at 30 September | | 5.5 | | 16.6 | | 35.8 | | 57.9 |
| 2010 | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Balance as at 1 April 2009 | | 5.5 | | 16.6 | | 32.8 | | 54.9 |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Dividends paid to | 13 | - | | - | | (5.9) | | (5.9) |
| shareholders | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Purchase of UK Mail shares | | - | | - | | (0.7) | | (0.7) |
| by the ESOT | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Employees' share option | | | | | | | | |
| scheme: | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| - value of employee | | - | | - | | 0.4 | | 0.4 |
| services | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Profit for the period | | - | | - | | 5.0 | | 5.0 |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Balance as at 30 September | | 5.5 | | 16.6 | | 31.6 | | 53.7 |
| 2009 | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Balance as at 1 April 2009 | | 5.5 | | 16.6 | | 32.8 | | 54.9 |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Dividends paid to | 13 | - | | - | | (9.3) | | (9.3) |
| shareholders | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Purchase of UK Mail shares | | - | | - | | (0.7) | | (0.7) |
| by the ESOT | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Employees' share option | | | | | | | | |
| scheme: | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| - value of employee | | - | | - | | 0.9 | | 0.9 |
| services | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Profit for the period | | - | | - | | 12.7 | | 12.7 |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| Balance as at 31 March | | 5.5 | | 16.6 | | 36.4 | | 58.5 |
| 2010 | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| | | | | | | | | |
+----------------------------+------+--------------------------------+----------+-------------------+----------+---------------------+----------+----------------------------------+
| |
+----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | | | | | |
+----------------------------+------+----------+----------+----------+----------+--+---+-+----------+----------+----+---+-+----------+----------+-+----------+----------+----------+
+--+-----+-----+-----+------+------+------+--------+--------------------+
| | Notes to condensed consolidated interim financial statements |
+--+--------------------------------------------------------------------+
| | | | |
+--+-----+-----+--------------------------------------------------------+
|1 | General information |
+--+--------------------------------------------------------------------+
| | | | | | |
+--+-----+-----+-----+------+-------------------------------------------+
| | UK Mail Group plc ('the Company') and its subsidiaries |
| | (together 'the Group') are engaged in the provision of express |
| | collection and delivery services for parcels, mail and |
| | palletised goods. |
+--+--------------------------------------------------------------------+
| | | | | | |
+--+-----+-----+-----+------+-------------------------------------------+
| | The Company (Registered No. 02800218) is a public limited |
| | liability company incorporated and domiciled in England. The |
| | address of its registered office is 464 Berkshire Avenue, |
| | Slough, Berkshire, SL1 4PL. The Company is listed on the |
| | London Stock Exchange (LSE:UKM). |
+--+--------------------------------------------------------------------+
| | | | | | |
+--+-----+-----+-----+------+-------------------------------------------+
| | The condensed consolidated interim financial statements were |
| | approved for issue on 17 November 2010. |
+--+--------------------------------------------------------------------+
| | | | | | | | | |
+--+-----+-----+-----+------+------+------+--------+--------------------+
| | The condensed consolidated interim financial statements do not |
| | comprise statutory accounts within the meaning of Section 434 |
| | of the Companies Act 2006. Within the notes to these financial |
| | statements the half year periods to 30 September 2010 and 2009 |
| | are unaudited. Statutory accounts for the year ended 31 March |
| | 2010 were approved by the Board of directors on 18 May 2010 |
| | and delivered to the Registrar of Companies. The report of |
| | the auditors on those accounts was unqualified, did not |
| | contain an emphasis of matter paragraph and did not contain |
| | any statement under Section 498(2) or (3) of the Companies Act |
| | 2006. |
+--+--------------------------------------------------------------------+
| | | | | | | |
+--+-----+-----+-----+------+------+------------------------------------+
|2 | Basis of preparation |
+--+--------------------------------------------------------------------+
| | | | | | | |
+--+-----+-----+-----+------+------+------------------------------------+
| | The condensed consolidated interim financial statements for |
| | the half year ended 30 September 2010 has been prepared in |
| | accordance with the Disclosure and Transparency Rules of the |
| | Financial Services Authority and with IAS 34, 'Interim |
| | financial reporting' as adopted by the European Union. They do |
| | not include all of the information and disclosures required |
| | for full annual financial statements, and should be read in |
| | conjunction with the consolidated annual financial statements |
| | of the Group as at and for the year ended 31 March 2010, which |
| | were prepared in accordance with IFRSs as adopted by the |
| | European Union. |
+--+--------------------------------------------------------------------+
| | | | | | | |
+--+-----+-----+-----+------+------+------------------------------------+
| | The consolidated financial statements of the Group as at and |
| | for the year ended 31 March 2010 are available upon request |
| | from the Company's registered office at 464 Berkshire Avenue |
| | Slough, SL1 4PL or at www.ukmail.com. |
+--+--------------------------------------------------------------------+
| | | | | | | |
+--+-----+-----+-----+------+------+------------------------------------+
| | The interim financial statements are presented in Sterling and |
| | all values are rounded to the nearest million (GBPm), except |
| | when otherwise indicated. |
+--+--------------------------------------------------------------------+
| | | | | | | | |
+--+-----+-----+-----+------+------+------+-----------------------------+
| | After making enquiries, the directors have a reasonable |
| | expectation that the Company and the Group have adequate |
| | resources to continue in operational existence for the |
| | foreseeable future. The Group meets its day to day working |
| | capital requirements through operating cash flows, with |
| | borrowings in place to fund acquisitions and capital |
| | expenditure. Movements in the Group's overall net debt |
| | position are shown in note 9. The Group also has GBP12m of |
| | undrawn committed facilities, which are in place until 30 June |
| | 2011. Accordingly they continue to adopt the going concern |
| | basis in preparing the condensed consolidated interim |
| | financial statements. |
+--+--------------------------------------------------------------------+
| | | | | | | | |
+--+-----+-----+-----+------+------+------+-----------------------------+
|3 | Accounting policies |
+--+--------------------------------------------------------------------+
| | | | | | | | |
+--+-----+-----+-----+------+------+------+-----------------------------+
| | Except as described below, the accounting policies applied by |
| | the Group in these condensed consolidated interim financial |
| | statements are consistent with those applied by the Group in |
| | its consolidated annual financial statements as at and for the |
| | year ended 31 March 2010. |
+--+--------------------------------------------------------------------+
| | |
+--+--------------------------------------------------------------------+
| | During the period the Group has adopted the following new |
| | standards, amendments to standards or interpretations, which |
| | are mandatory for the first time for the financial year |
| | beginning 1 April 2010. |
| | The adoption of these standards and interpretations had no |
| | material impact on the Group. |
+--+--------------------------------------------------------------------+
| | | | | | | | |
+--+-----+-----+-----+------+------+------+-----------------------------+
| | ¦ | IAS 1 (amendment), 'Presentation of financial statements', |
| | | effective for annual periods beginning on or after 1 January |
| | | 2010 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | | |
+--+-----+-----+-----+------+------+------+--------+--------------------+
| | ¦ | IAS 7 (amendment), 'Statement of cash flows', effective for |
| | | annual periods beginning on or after 1 January 2010 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | | |
+--+-----+-----+-----+------+------+------+--------+--------------------+
| | ¦ | IAS 17 (amendment), 'Leases', effective for annual periods |
| | | beginning on or after 1 January 2010 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | | |
+--+-----+-----+-----+------+------+------+--------+--------------------+
| | ¦ | IAS 18 (amendment to Appendix), 'Revenue', effective for |
| | | annual periods beginning on or after 1 July 2009 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | | |
+--+-----+-----+-----+------+------+------+--------+--------------------+
| | ¦ | IAS 27 (amendment), 'Consolidated and separate financial |
| | | statements', effective for annual periods beginning on or |
| | | after 1 July 2009 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | | |
+--+-----+-----+-----+------+------+------+--------+--------------------+
| | ¦ | IAS 32 (amendment), 'Financial instruments: presentation', |
| | | effective for annual periods beginning on or after 1 |
| | | February 2010 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | | |
+--+-----+-----+-----+------+------+------+--------+--------------------+
| | ¦ | IAS 36 (amendment), 'Impairment of assets', effective for |
| | | annual periods beginning on or after 1 January 2010 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | | |
+--+-----+-----+-----+------+------+------+--------+--------------------+
| | ¦ | IAS 38 (amendment), 'Intangible assets', effective for |
| | | annual periods beginning on or after 1 July 2009 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | | |
+--+-----+-----+-----+------+------+------+--------+--------------------+
| | ¦ | IAS 39 (amendments), 'Recognition and measurement', |
| | | effective for annual periods beginning on or after 1 July |
| | | 2009 and 1 January 2010 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | |
+--+-----+-----+-----+------+------+------+-----------------------------+
| | ¦ | IFRIC 16 (amendment), 'Hedges of a net investment in a |
| | | foreign operation', effective for annual periods beginning |
| | | on or after 1 July 2009 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | |
+--+-----+-----+-----+------+------+------+-----------------------------+
| | ¦ | IFRIC 17, 'Distribution of non-cash assets to owners', |
| | | effective for annual periods beginning on or after 1 July |
| | | 2009 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | |
+--+-----+-----+-----+------+------+------+-----------------------------+
| | ¦ | IFRIC 18, 'Transfers of assets from customers', effective |
| | | for annual periods beginning on or after 1 July 2009 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | |
+--+-----+-----+-----+------+------+------+-----------------------------+
| | ¦ | IFRS 2 (amendment), 'Group cash-settled share-based payment |
| | | transactions', effective for annual periods beginning on or |
| | | after 1 January 2010 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | |
+--+-----+-----+-----+------+------+------+-----------------------------+
| | ¦ | IFRS 3 (revised), 'Business combinations', effective for |
| | | annual periods beginning on or after 1 July 2009 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | |
+--+-----+-----+-----+------+------+------+-----------------------------+
| | ¦ | IFRS 5 (amendment), 'Non-current assets held-for-sale and |
| | | discontinued items', effective for annual periods beginning |
| | | on or after 1 July 2009 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | |
+--+-----+-----+-----+------+------+------+-----------------------------+
| | ¦ | IFRS 8 (amendment), 'Operating segments', effective for |
| | | annual periods beginning on or after 1 January 2010 |
+--+-----+--------------------------------------------------------------+
| | | | | | | | |
+--+-----+-----+-----+------+------+------+-----------------------------+
| | The following new standards, interpretations and amendments |
| | have been issued, but are not effective for the financial year |
| | beginning 1 April 2010 and have not been early adopted: |
+--+--------------------------------------------------------------------+
| | | | | | | |
+--+-----+-----+-----+------+------+------------------------------------+
| | ¦ | IAS 1 (amendment), 'Presentation of financial statements', |
| | | effective for annual periods beginning on or after 1 January |
| | | 2011 |
+--+-----+--------------------------------------------------------------+
| | | |
+--+-----+--------------------------------------------------------------+
| | ¦ | IAS 24 (revised), 'Related party disclosures', effective for |
| | | annual periods beginning on or after 1 January 2011 |
+--+-----+--------------------------------------------------------------+
| | | |
+--+-----+--------------------------------------------------------------+
| | ¦ | IAS 27 (amendment), 'Consolidated and separate financial |
| | | statements', effective for annual periods beginning on or |
| | | after 1 July 2010 |
+--+-----+--------------------------------------------------------------+
| | | |
+--+-----+--------------------------------------------------------------+
| | ¦ | IAS 34 (amendment), 'Interim financial reporting', effective |
| | | for annual periods beginning on or after 1 January 2011 |
+--+-----+--------------------------------------------------------------+
| | | |
+--+-----+--------------------------------------------------------------+
| | ¦ | IFRIC 19, 'Extinguishing financial liabilities with equity |
| | | instruments', effective for annual periods beginning on or |
| | | after 1 July 2010 |
+--+-----+--------------------------------------------------------------+
| | | |
+--+-----+--------------------------------------------------------------+
| | ¦ | IFRS 3 (amendment), 'Business combinations', effective for |
| | | annual periods beginning on or after 1 July 2010 |
+--+-----+--------------------------------------------------------------+
| | | | | | | |
+--+-----+-----+-----+------+------+------------------------------------+
| | ¦ | IFRS 7 (amendment), 'Financial instruments: disclosures', |
| | | effective for annual periods beginning on or after 1 January |
| | | 2011 |
+--+-----+--------------------------------------------------------------+
| | | | | | | |
+--+-----+-----+-----+------+------+------------------------------------+
| | ¦ | IFRS 9, 'Financial instruments', effective for annual |
| | | periods beginning on or after 1 January 2013 |
+--+-----+-----+-----+------+------+------+--------+--------------------+
+--+----------+-----+-----+------+------+------------------------------------+
|4 | Changes in accounting estimates |
+--+-------------------------------------------------------------------------+
| | | | | | | |
+--+----------+-----+-----+------+------+------------------------------------+
| | The preparation of the condensed consolidated interim financial |
| | statements requires management to make judgements, estimates and |
| | assumptions that affect the application of accounting policies and the |
| | reported amounts of assets and liabilities, income and expense. Actual |
| | results may differ from these estimates. |
+--+-------------------------------------------------------------------------+
| | | | | | | |
+--+----------+-----+-----+------+------+------------------------------------+
| | In preparing these condensed consolidated interim financial statements, |
| | the significant judgements made by management in applying the Group's |
| | accounting policies and the key sources of estimation uncertainty were |
| | the same as those applied to the consolidated financial statements as |
| | at and for the year ended 31 March 2010. |
+--+-------------------------------------------------------------------------+
| | | | | | | |
+--+----------+-----+-----+------+------+------------------------------------+
| | There have been no material changes in contingent liabilities during |
| | the current interim period. |
+--+----------+-----+-----+------+------+------------------------------------+
+--+----------+--+-----+-----+----+--+-------+----------+-------+--+------+-+---------+----------+---------+----------+----------+-------+----------+----+
| 5 | Segmental information | |
+-------------+-------------------------------------------------------------------------------------------------------------------------------------+----+
| | | | | | | | |
+-------------+--+-----+-----+-------+------------------+-------------------------------------------------------------------------------------------+----+
| | Management has determined the operating segments based on reports that are reviewed by the Board for making strategic | |
| | decisions. These reports reflect the Group's defined management structure, whereby distinct managers are accountable to the | |
| | Board for the results and activities of their identified segments and the different markets in which they operate. The Board | |
| | considers that the Group has four reportable operating segments. | |
+-------------+-------------------------------------------------------------------------------------------------------------------------------------+----+
| | | | | | | | |
+-------------+--+-----+-----+-------+------------------+-------------------------------------------------------------------------------------------+----+
| | The Group's operating segments consist of Parcels, Mail, Pallets, and Courier Services. Central costs comprises of network | |
| | costs and central support costs. | |
+-------------+-------------------------------------------------------------------------------------------------------------------------------------+----+
| | | | | | | | |
+-------------+--+-----+-----+-------+------------------+-------------------------------------------------------------------------------------------+----+
| | The Group manages its business segments on a national basis, with all its operations in the UK, as are nearly all of the | |
| | customers. | |
| | | |
+-------------+-------------------------------------------------------------------------------------------------------------------------------------+----+
| | Inter-company transactions, balances and unrealised gains on transactions between segments are eliminated. Unrealised losses | |
| | are also eliminated. | |
+-------------+-------------------------------------------------------------------------------------------------------------------------------------+----+
| | | | | | | | |
+-------------+--+-----+-----+-------+------------------+-------------------------------------------------------------------------------------------+----+
| | No individual customer accounted for more than 5% of revenue in the periods included in these condensed consolidated interim | |
| | financial statements. | |
+-------------+-------------------------------------------------------------------------------------------------------------------------------------+----+
| | | | | | | | |
+-------------+--+-----+-----+-------+------------------+-------------------------------------------------------------------------------------------+----+
| | Six months ended 30 September 2010 (unaudited) | |
+-------------+-------------------------------------------------------------------------------------------------------------------------------------+----+
| | | | | |
+-------------+--+-----+----------------------------------------------------------------------------------------------------------------------------+----+
| | | | Parcels | Mail | Pallets | Courier | | | Group | | |
+-------------+--+--------------------------------------+----------+------+-----------+--------------------+----------+----------+-------+----------+----+
| | | | GBPm | GBPm | GBPm | GBPm | | | GBPm | | |
+-------------+--+--------------------------------------+----------+------+-----------+--------------------+----------+----------+-------+----------+----+
| | Segmental revenue | 81.0 | 85.9 | 14.3 | 9.9 | | | 191.1 | |
+-------------+-----------------------------------------+----------+------+-----------+--------------------+----------+----------+------------------+----+
| | Inter-segment revenue | - | - | - | (0.4) | | (0.4) | |
+-------------+-----------------------------------------+----------+------+-----------+-------------------------------+----------+------------------+----+
| | Revenue (from external customers) | 81.0 | 85.9 | 14.3 | 9.5 | | 190.7 | |
+-------------+-----------------------------------------+----------+------+-----------+-------------------------------+----------+------------------+----+
| | | | | | | | | |
+-------------+-----------------------------------------+----------+------+-----------+-------------------------------+----------+------------------+----+
| | Operating profit before central costs | 6.5 | 5.6 | 0.9 | 1.0 | | 14.0 | |
+-------------+-----------------------------------------+----------+------+-----------+-------------------------------+----------+------------------+----+
| | Central costs | | | | | (6.5) | |
+-------------+----------------------------------------------------+------+-----------+-------------------------------+----------+------------------+----+
| | Operating profit | | | | | 7.5 | |
+-------------+----------------------------------------------------+------+-----------+-------------------------------+----------+------------------+----+
| | Finance costs | | | | | (0.1) | |
+-------------+----------------------------------------------------+------+-----------+-------------------------------+----------+------------------+----+
| | Finance income | | | | | - | |
+-------------+----------------------------------------------------+------+-----------+-------------------------------+----------+------------------+----+
| | Profit before taxation | | | | | 7.4 | |
+-------------+----------------------------------------------------+------+-----------+-------------------------------+----------+------------------+----+
| | Taxation | | | | | (2.1) | |
+-------------+----------------------------------------------------+------+-----------+-------------------------------+----------+------------------+----+
| | Profit for the period | | | | | 5.3 | |
+-------------+----------------------------------------------------+------+-----------+-------------------------------+----------+------------------+----+
| | | |
+-------------+-------------------------------------------------------------------------------------------------------------------------------------+----+
| | Assets | |
+-------------+-------------------------------------------------------------------------------------------------------------------------------------+----+
| | | | |
+-------------+--+----------------------------------------------------------------------------------------------------------------------------------+----+
| | Segment assets | 65.2 | 46.4 | 6.1 | 0.4 | | | 118.1 | |
+-------------+-----------------------------------------+----------+--------+---------+--------------------+----------+----------+------------------+----+
| | Eliminations | (3.5) | (23.5) | (1.2) | - | | | (28.2) | |
+-------------+-----------------------------------------+----------+--------+---------+--------------------+----------+----------+------------------+----+
| | Net segment assets | 61.7 | 22.9 | 4.9 | 0.4 | | | 89.9 | |
+-------------+-----------------------------------------+----------+--------+---------+--------------------+----------+----------+------------------+----+
| | Central assets | | | | | | | 29.7 | |
+-------------+-----------------------------------------+----------+--------+---------+--------------------+----------+----------+------------------+----+
| | Group assets per balance sheet | | | | | | | 119.6 | |
+-------------+-----------------------------------------+----------+--------+---------+--------------------+----------+----------+------------------+----+
| | | | | | | | | | | | | |
+-------------+--+-----+--------------------------------+----------+--------+---------+--------------------+----------+----------+-------+----------+----+
| | Six months ended 30 September 2009 (unaudited) | | |
+-------------+--------------------------------------------------------------------------------------------------------------------------+----------+----+
| | | | | | | | | | | | | |
+-------------+--+-----+--------------------------------+----------+--------+---------+--------------------+----------+----------+-------+----------+----+
| | | | | Parcels | Mail | Pallets | Courier | | | Group | | |
+-------------+--+-----+--------------------------------+----------+--------+---------+--------------------+----------+----------+-------+----------+----+
| | | | | GBPm | GBPm | GBPm | GBPm | | | | | |
| | | | | | | | | | | GBPm | | |
+-------------+--+-----+--------------------------------+----------+--------+---------+--------------------+----------+----------+-------+----------+----+
| | Revenue | 80.0 | 84.6 | 14.9 | 9.2 | | | 188.7 | |
+-------------+-----------------------------------------+----------+--------+---------+--------------------+----------+----------+------------------+----+
| | Inter-segment revenue | - | - | - | (0.5) | | | (0.5) | |
+-------------+-----------------------------------------+----------+--------+---------+--------------------+----------+----------+------------------+----+
| | Revenue (from external customers) | 80.0 | 84.6 | 14.9 | 8.7 | | | 188.2 | |
+-------------+-----------------------------------------+----------+--------+---------+--------------------+----------+----------+------------------+----+
| | | | | | | | | | |
+-------------+-----------------------------------------+----------+--------+---------+--------------------+----------+----------+------------------+----+
| | Operating profit before central costs | 6.3 | 5.9 | 0.8 | 1.2 | | | 14.2 | |
+-------------+-----------------------------------------+----------+--------+---------+--------------------+----------+----------+------------------+----+
| | Central costs | (7.1) | |
+-------------+------------------------------------------------------------------------------------------------------------------+------------------+----+
| | Operating profit | 7.1 | |
+-------------+------------------------------------------------------------------------------------------------------------------+------------------+----+
| | Finance costs | (0.2) | |
+-------------+------------------------------------------------------------------------------------------------------------------+------------------+----+
| | Finance income | 0.1 | |
+-------------+------------------------------------------------------------------------------------------------------------------+------------------+----+
| | Profit before taxation | 7.0 | |
+-------------+------------------------------------------------------------------------------------------------------------------+------------------+----+
| | Taxation | (2.0) | |
+-------------+------------------------------------------------------------------------------------------------------------------+------------------+----+
| | Profit for the period | 5.0 | |
+-------------+------------------------------------------------------------------------------------------------------------------+------------------+----+
| | | | | | | | | | |
+--+-----------------------------------------+------------------+---------+-----------+--------------------+----------+----------+------------------+----+
| | | | | | | | | | |
| | | | | | | | | | |
| | Assets | | | | | | | | |
+--+-----------------------------------------+------------------+---------+-----------+--------------------+----------+----------+------------------+----+
| | | | | | | | | | |
+--+-----------------------------------------+------------------+---------+-----------+--------------------+----------+----------+------------------+----+
| | Segment assets | 61.0 | 54.9 | 10.9 | 0.4 | | | 127.2 | |
+--+-----------------------------------------+------------------+---------+-----------+--------------------+----------+----------+------------------+----+
| | Eliminations | - | (30.5) | (5.9) | - | | | (36.4) | |
+--+-----------------------------------------+------------------+---------+-----------+--------------------+----------+----------+------------------+----+
| | Net segment assets | 61.0 | 24.4 | 5.0 | 0.4 | | | 90.8 | |
+--+-----------------------------------------+------------------+---------+-----------+--------------------+----------+----------+------------------+----+
| | Central assets | | | | | | | 24.2 | |
+--+-----------------------------------------+------------------+---------+-----------+--------------------+----------+----------+------------------+----+
| | Total assets per balance sheet | | | | | | | 115.0 | |
+--+-----------------------------------------+------------------+---------+-----------+--------------------+----------+----------+------------------+----+
| | | | | | | | | | | |
+-------------+--+----------------+---------------------+----------+--------+---------+--------------------+---------------------+------------------+----+
| | | | | |
+-------------+--+---------------------------------------------------------------------------------------------------------------+------------------+----+
| | Year ended 31 March 2010 (audited) | |
+-------------+-------------------------------------------------------------------------------------------------------------------------------------+----+
| | | | |
+-------------+--+----------------------------------------------------------------------------------------------------------------------------------+----+
| | | | Parcels | Mail | Pallets | Courier | | | Group | | |
+-------------+--+--------------------------------------+----------+--------+--------------------+---------+----------+----------+-------+----------+----+
| | | | GBPm | GBPm | GBPm | GBPm | | | GBPm | | |
+-------------+--+--------------------------------------+----------+--------+--------------------+---------+----------+----------+-------+----------+----+
| | Revenue | 164.7 | 173.5 | 29.1 | 18.9 | | 386.2 | |
+-------------+-----------------------------------------+----------+--------+--------------------+--------------------+----------+------------------+----+
| | Inter-segment revenue | - | - | - | (1.0) | | (1.0) | |
+-------------+-----------------------------------------+----------+--------+--------------------+--------------------+----------+------------------+----+
| | Revenue (from external customers) | 164.7 | 173.5 | 29.1 | 17.9 | | 385.2 | |
+-------------+-----------------------------------------+----------+--------+--------------------+--------------------+----------+------------------+----+
| | | | | | | | | |
+-------------+-----------------------------------------+----------+--------+--------------------+--------------------+----------+------------------+----+
| | Operating profit before central costs | 14.8 | 12.2 | 1.7 | 2.4 | | 31.1 | |
+-------------+-----------------------------------------+----------+--------+--------------------+--------------------+----------+------------------+----+
| | Central costs | | | | | | (13.2) | |
+-------------+-----------------------------------------+----------+--------+--------------------+--------------------+----------+------------------+----+
| | Operating profit | | 17.9 | |
+-------------+----------------------------------------------------+-------------------------------------------------------------+------------------+----+
| | Finance costs | | (0.2) | |
+-------------+----------------------------------------------------+-------------------------------------------------------------+------------------+----+
| | Finance income | | 0.1 | |
+-------------+----------------------------------------------------+-------------------------------------------------------------+------------------+----+
| | Profit before taxation | | 17.8 | |
+-------------+----------------------------------------------------+-------------------------------------------------------------+------------------+----+
| | Taxation | | (5.1) | |
+-------------+----------------------------------------------------+-------------------------------------------------------------+------------------+----+
| | Profit for the period | | 12.7 | |
+-------------+----------------------------------------------------+-------------------------------------------------------------+------------------+----+
| | | | | | | | | | | | | | | | | | | | | |
+--+----------+--+-----+-----+----+--+-------+----------+-------+--+------+-+---------+----------+---------+----------+----------+-------+----------+----+
+----------+-+----------+----------+--+----------+-----+------------------+---+-----+--+--+----+----------+-------+---+----+-+-----+----------+------+----------+
| | Assets | | | | | | |
+-----------------------+-------------------------------------------------+---------+----------+------------------+--------+------------------+-----------------+
| | | | | | | | | |
+-----------------------+-------------+-----------------------------------+---------+----------+------------------+--------+------------------+-----------------+
| | Segment assets | 58.9 | 58.0 | 5.5 | 0.7 | | 123.1 |
+-----------------------+-------------------------------------------------+---------+----------+------------------+--------+------------------+-----------------+
| | Eliminations | (7.1) | (35.1) | (0.5) | - | | (42.7) |
+-----------------------+-------------------------------------------------+---------+----------+------------------+--------+------------------+-----------------+
| | Net segment assets | 51.8 | 22.9 | 5.0 | 0.7 | | 80.4 |
+-----------------------+-------------------------------------------------+---------+----------+------------------+--------+------------------+-----------------+
| | Central assets | | | | | | 45.3 |
+-----------------------+-------------------------------------------------+---------+----------+------------------+--------+------------------+-----------------+
| | Total assets per balance sheet | | | | | | 125.7 |
+-----------------------+-------------------------------------------------+---------+----------+------------------+--------+------------------+-----------------+
| | | | |
+-----------------------+-------------+----------------+--------------------------------------------------------------------------------------------------------+
| | | | |
+-----------------------+-------------+----------------+--------------------------------------------------------------------------------------------------------+
| | |
+-----------------------+---------------------------------------------------------------------------------------------------------------------------------------+
| | | | |
+-----------------------+-------------+----------------+--------------------------------------------------------------------------------------------------------+
| | | | 30 | | | 30 | | 31 March | |
| | | | September | | | September | | | |
+-----------------------+-------------+---------------------------------------+-----------+----+----------+-----------+------+-----------------------+----------+
| | | | 2010 | | | 2009 | | 2010 | |
+-----------------------+-------------+---------------------------------------+-----------+----+----------+-----------+------+-----------------------+----------+
| | Total segment capital expenditure | 2.7 | | 3.4 | 4.9 |
+-----------------------+-----------------------------------------------------+----------------+----------+------------------+----------------------------------+
| | Central capital expenditure | 1.4 | | 1.0 | 2.1 |
+-----------------------+-----------------------------------------------------+----------------+----------+------------------+----------------------------------+
| | Total capital expenditure | 4.1 | | 4.4 | 7.0 |
+-----------------------+-----------------------------------------------------+----------------+----------+------------------+----------------------------------+
| | | | |
+-----------------------+-------------+----------------+--------------------------------------------------------------------------------------------------------+
| | Total segment depreciation and amortisation | 2.9 | | 2.5 | 5.3 | |
+-----------------------+-----------------------------------------------------+----------------+----------+------------------+-----------------------+----------+
| | Central depreciation and amortisation | 0.9 | | 0.8 | 1.7 | |
+-----------------------+-----------------------------------------------------+----------------+----------+------------------+-----------------------+----------+
| | Total depreciation and amortisation | 3.8 | | 3.3 | 7.0 | |
+-----------------------+-----------------------------------------------------+----------------+----------+------------------+-----------------------+----------+
| | | |
+------------+-----------------------------------+--------------------------------------------------------------------------------------------------------------+
| 6 | Property, plant and equipment and intangible assets | |
+------------+---------------------------------------------------------------------------------------------------------------------+----------------------------+
| | | |
+------------+---------------------------------------------------------------------------------------------------------------------+----------------------------+
| | | |
+------------+---------------------------------------------------------------------------------------------------------------------+----------------------------+
| | Six months ended 30 September 2010 (unaudited) | GBPm | |
+----------------------------------+----------------------------------------------------------------------------------------------------------+------+----------+
| | | | | |
+----------------------------------+------------------------------------------------+--+------------------------------------------------------+-----------------+
| | Opening net book value at 1 April 2010 | | | 50.6 |
+----------------------------------+------------------------------------------------+--+------------------------------------------------------+-----------------+
| | Additions | | | 4.1 |
+----------------------------------+------------------------------------------------+--+------------------------------------------------------+-----------------+
| | Disposals | | | - |
+----------------------------------+------------------------------------------------+--+------------------------------------------------------+-----------------+
| | Depreciation and amortisation | | | (3.8) |
+----------------------------------+------------------------------------------------+--+------------------------------------------------------+-----------------+
| | Closing net book value at 30 September 2010 | | | 50.9 |
+----------------------------------+------------------------------------------------+--+------------------------------------------------------+-----------------+
| | |
+----------+----------------------------------------------------------------------------------------------------------------------------------------------------+
| | |
+----------+----------------------------------------------------------------------------------------------------------------------------------------------------+
| | |
+----------+----------------------------------------------------------------------------------------------------------------------------------------------------+
| | |
+----------+----------------------------------------------------------------------------------------------------------------------------------------------------+
| | Six months ended 30 September 2009 (unaudited) | GBPm | |
+----------------------------------+----------------------------------------------------------------------------------------------------------+------+----------+
| | | | | |
+----------------------------------+------------------------------------------------+--+------------------------------------------------------+-----------------+
| | Opening net book value at 1 April 2009 | | | 50.7 |
+----------------------------------+------------------------------------------------+--+------------------------------------------------------+-----------------+
| | Additions | | | 4.4 |
+----------------------------------+------------------------------------------------+--+------------------------------------------------------+-----------------+
| | Disposals | | | (0.1) |
+----------------------------------+------------------------------------------------+--+------------------------------------------------------+-----------------+
| | Depreciation and amortisation | | | (3.3) |
+----------------------------------+------------------------------------------------+--+------------------------------------------------------+-----------------+
| | Closing net book value at 30 September 2009 | | | 51.7 |
+----------------------------------+------------------------------------------------+--+------------------------------------------------------+-----------------+
| | | | | | | | | | | | | | | | | | | | | | |
+----------+-+----------+----------+--+----------+-----+------------------+---+-----+--+--+----+----------+-------+---+----+-+-----+----------+------+----------+
+--+---------------------------------+--+-----------+--------+------+----------+
| | Year ended 31 March 2010 | | | | GBPm | |
| | (audited) | | | | | |
+--+---------------------------------+--+-----------+--------+------+----------+
| | | | | | |
+--+---------------------------------+--+-----------+--------+-----------------+
| | Opening net book value at 1 | | | | 50.7 |
| | April 2009 | | | | |
+--+---------------------------------+--+-----------+--------+-----------------+
| | Additions | | | | 7.0 |
+--+---------------------------------+--+-----------+--------+-----------------+
| | Disposals | | | | (0.1) |
+--+---------------------------------+--+-----------+--------+-----------------+
| | Depreciation and amortisation | | | | (7.0) |
+--+---------------------------------+--+-----------+--------+-----------------+
| | Closing net book value at 31 | | | | 50.6 |
| | March 2010 | | | | |
+--+---------------------------------+--+-----------+--------+------+----------+
+--+----------+-------+-------+------+----------+-+----------+----------+------+----------+---+----------+--+----------+--+----------+-------+----------+----------+----------+--------+----------+
|7 | Share Capital |
+--+----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | |
+--+----------+-------+-------+------+-----------------------+----------+-------------------------------------------------------------------------------------------------------------------------+
| | | | | | | Number of | | Ordinary | | Share | | Unaudited |
+--+----------+-------+-------+------+----------+------------------------------+----------+-------------------------------+----------+------------------+---------------------+-------------------+
| | | | | | | ordinary | | shares | | premium | | Total |
+--+----------+-------+-------+------+----------+------------------------------+----------+-------------------------------+----------+------------------+---------------------+-------------------+
| | Capital | | | | shares | | GBPm | | GBPm | | GBPm |
+--+------------------+-------+------+----------+------------------------------+----------+-------------------------------+----------+------------------+---------------------+-------------------+
| | | | | | | | | | | | | |
+--+----------+-------+-------+------+----------+------------------------------+----------+-------------------------------+----------+------------------+---------------------+-------------------+
| | At 1 April 2010 and 30 September 2010 | 54,675,241 | | 5.5 | | 16.6 | | 22.1 |
+--+--------------------------------------------+------------------------------+----------+-------------------------------+----------+------------------+---------------------+-------------------+
| | | | | | | | | | | | | |
+--+----------+-------+-------+------+----------+------------------------------+----------+-------------------------------+----------+------------------+---------------------+-------------------+
| | At 1 April 2009 and 30 September 2009 | 54,674,237 | | 5.5 | | 16.6 | | 22.1 |
+--+--------------------------------------------+------------------------------+----------+-------------------------------+----------+------------------+---------------------+-------------------+
| | | | | | | | | | | |
+--+--------------------------+------+----------+------------------------------+----------+-------------------------------+----------+------------------+---------------------+-------------------+
| | The Company's Employee Share Ownership Trust ('ESOT') holds shares in the Company for subsequent transfer to employees under its incentive scheme awards. At 31 March 2010 the ESOT held a |
| | total of 342,198 shares (31 March 2009: 624,817 shares). During June and July 2010, 233,697 shares were issued to directors and employees, following the successful vesting of awards under |
| | the 2007 LTIP and Share Matching plans, and as a result the ESOT held 108,501 shares as at 30 September 2010 (30 September 2009: 350,276 shares). The weighted average market share price of |
| | these transactions was 341p per share. |
+--+----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | |
+--+----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | During the six months to 30 September 2010 no share options were exercised (2009: nil). |
+--+----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | |
+--+----------+-------+-------+------+-----------------------+----------------------------+-------------------------------------------------------------------------------------------------------+
|8 | Reconciliation of profit to net cash flow generated from operations |
+--+----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | |
+--+----------+-------+-------+------+------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | Unaudited | | | Unaudited | | | Audited | |
+--+----------+-------+-------+------+------------+-------------------------------------------+----------+-------------+---------------------+----------+----------+-------------------+----------+
| | | | | | | Six months to | | | Six months to | | | Year to | |
+--+----------+-------+-------+------+------------+-------------------------------------------+----------+-------------+---------------------+----------+----------+-------------------+----------+
| | | | | | | 30 September | | | 30 September | | | 31 March | |
+--+----------+-------+-------+------+------------+-------------------------------------------+----------+-------------+---------------------+----------+----------+-------------------+----------+
| | | | | | | 2010 | | | 2009 | | | 2010 | |
+--+----------+-------+-------+------+------------+-------------------------------------------+----------+-------------+---------------------+----------+----------+-------------------+----------+
| | | | | | | GBPm | | | GBPm | | | GBPm | |
+--+----------+-------+-------+------+------------+-------------------------------------------+----------+-------------+---------------------+----------+----------+-------------------+----------+
| | Profit for the period | 5.3 | | 5.0 | | 12.7 |
+--+----------------------------------------------+---------------------------------------------------------+----------+--------------------------------+----------+------------------------------+
| | Taxation | 2.1 | | 2.0 | | 5.1 |
+--+----------------------------------------------+---------------------------------------------------------+----------+--------------------------------+----------+------------------------------+
| | Finance costs payable | 0.1 | | 0.2 | | 0.2 |
+--+----------------------------------------------+---------------------------------------------------------+----------+--------------------------------+----------+------------------------------+
| | Finance income receivable | - | | (0.1) | | (0.1) |
+--+----------------------------------------------+---------------------------------------------------------+----------+--------------------------------+----------+------------------------------+
| | Depreciation and amortisation | 3.8 | | 3.3 | | 7.0 |
+--+----------------------------------------------+---------------------------------------------------------+----------+--------------------------------+----------+------------------------------+
| | (Profit)/loss on disposal of property, plant | (0.1) | | 0.1 | | - |
| | and equipment | | | | | |
+--+----------------------------------------------+---------------------------------------------------------+----------+--------------------------------+----------+------------------------------+
| | Share-based payments | 0.5 | | 0.4 | | 1.1 |
+--+----------------------------------------------+---------------------------------------------------------+----------+--------------------------------+----------+------------------------------+
| | (Increase)/decrease in trade and other | (2.3) | | 1.6 | | 1.7 |
| | receivables | | | | | |
+--+----------------------------------------------+---------------------------------------------------------+----------+--------------------------------+----------+------------------------------+
| | (Decrease)/increase in trade and other | (3.8) | | (4.3) | | 1.5 |
| | payables | | | | | |
+--+----------------------------------------------+---------------------------------------------------------+----------+--------------------------------+----------+------------------------------+
| | (Decrease)/increase in provisions | (0.1) | | (0.4) | | (0.5) |
+--+----------------------------------------------+---------------------------------------------------------+----------+--------------------------------+----------+------------------------------+
| | Net cash inflow generated from operations | 5.5 | | 7.8 | | 28.7 |
+--+----------------------------------------------+---------------------------------------------------------+----------+--------------------------------+----------+------------------------------+
| | | | | | | | | | | | | | | | | | | | | | | |
+--+----------+-------+-------+------+----------+-+----------+----------+------+----------+---+----------+--+----------+--+----------+-------+----------+----------+----------+--------+----------+
+--+----------+-----+-----+------+------+---------+----------+----------+--------+----------+-------+----------+-----------+----------+
|9 | Analysis of net cash/(debt) |
+--+----------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | |
+--+----------+-----+-----+------+------+---------------------------------------------------------------------------------------------+
| | | | | | Audited | | | | | | | Unaudited | |
+--+----------+-----+-----+-------------+---------+----------+----------+--------+----------+-------+----------+-----------+----------+
| | | | | | At 1 | | | | | | | At 30 | |
| | | | | | April | | | | | | | September | |
+--+----------+-----+-----+-------------+---------+----------+----------+--------+----------+-------+----------+-----------+----------+
| | | | | | 2010 | | | Cash | | Other | | 2010 | |
| | | | | | | | | flow | | | | | |
+--+----------+-----+-----+-------------+---------+----------+----------+--------+----------+-------+----------+-----------+----------+
| | | | | | GBPm | | | GBPm | | GBPm | | GBPm | |
+--+----------+-----+-----+-------------+---------+----------+----------+--------+----------+-------+----------+-----------+----------+
| | | | | | | | | | | | |
+--+----------+-----+-----+-------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Cash at bank and in hand | 22.5 | | (8.6) | | - | | 13.9 |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Net cash and cash equivalents | 22.5 | | (8.6) | | - | | 13.9 |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | | | | | | | | |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Debt due within one year | (1.0) | | 1.0 | | (1.0) | | (1.0) |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Finance leases due within one year | (0.8) | | 0.4 | | (0.4) | | (0.8) |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Debt due after one year | (3.0) | | - | | 1.0 | | (2.0) |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Finance leases due after one year | (2.0) | | - | | 0.4 | | (1.6) |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Net debt | (6.8) | | 1.4 | | - | | (5.4) |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | | | | | | | | |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Net cash/(debt) | 15.7 | | (7.2) | | - | | 8.5 |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | | | | | | | | | | |
+--+----------+-----+-------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | | | | Audited | | | | | | | Unaudited | |
+--+----------+-----+-------------------+---------+----------+----------+--------+----------+-------+----------+-----------+----------+
| | | | | At 1 | | | | | | | At 30 | |
| | | | | April | | | | | | | September | |
+--+----------+-----+-------------------+---------+----------+----------+--------+----------+-------+----------+-----------+----------+
| | | | | 2009 | | | Cash | | Other | | 2009 | |
| | | | | | | | flow | | | | | |
+--+----------+-----+-------------------+---------+----------+----------+--------+----------+-------+----------+-----------+----------+
| | | | | GBPm | | | GBPm | | GBPm | | GBPm | |
+--+----------+-----+-------------------+---------+----------+----------+--------+----------+-------+----------+-----------+----------+
| | | | | | | | | | | |
+--+----------+-----+-------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Cash at bank and in hand | 18.0 | | (7.3) | | - | | 10.7 |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Net cash and cash equivalents | 18.0 | | (7.3) | | - | | 10.7 |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | | | | | | | | |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Debt due within one year | (1.0) | | 1.0 | | (1.0) | | (1.0) |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Finance leases due within one year | (0.7) | | 0.4 | | (0.4) | | (0.7) |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Debt due after one year | (4.0) | | - | | 1.0 | | (3.0) |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Finance leases due after one year | (2.8) | | - | | 0.4 | | (2.4) |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Net debt | (8.5) | | 1.4 | | - | | (7.1) |
+--+------------------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | | | | | | | | | |
+--+----------+-------------------------+--------------------+----------+--------+----------+-------+----------+----------------------+
| | Net cash/(debt) | 9.5 | | (5.9) | | - | | 3.6 |
+--+----------+-----+-----+------+------+---------+----------+----------+--------+----------+-------+----------+-----------+----------+
+----+--+-------+-----+---------+----------+----+---+---+----------+---------+----------+----------+--------+----------+--+------------+----------+----------+----------+
| | | | Audited | Cash flow | | | | | Audited | |
| | | | At 1 April | GBPm | | Other | | | At 31 March | |
| | | | 2009 | | | GBPm | | | 2010 | |
| | | | GBPm | | | | | | GBPm | |
| | | | | | | | | | | |
+----+--+----------------------------------+-----------------------+--------------------+----------+--------+----------+--+----------------------------------+----------+
| | | 18.0 | | 4.5 | | - | | 22.5 | |
| | | | | | | | | | |
| | Cash at bank and in hand | | | | | | | | |
+----+-------------------------------------+------------+----------+--------------------+----------+-------------------+--+----------------------------------+----------+
| | Net cash and cash equivalents | 18.0 | | 4.5 | | - | | 22.5 | |
+----+-------------------------------------+------------+----------+--------------------+----------+-------------------+--+----------------------------------+----------+
| | | | | | | | | |
+----+-------------------------------------+-----------------------+--------------------+----------+-------------------+--+----------------------------------+----------+
| | Debt due within one year | (1.0) | | 1.0 | | (1.0) | | (1.0) | |
+----+-------------------------------------+------------+----------+--------------------+----------+-------------------+--+----------------------------------+----------+
| | Finance leases due within one year | (0.7) | | 0.7 | | (0.8) | | (0.8) | |
+----+-------------------------------------+------------+----------+--------------------+----------+-------------------+--+----------------------------------+----------+
| | Debt due after one year | (4.0) | | - | | 1.0 | | (3.0) | |
+----+-------------------------------------+------------+----------+--------------------+----------+-------------------+--+----------------------------------+----------+
| | Finance leases due after one year | (2.8) | | - | | 0.8 | | (2.0) | |
+----+-------------------------------------+------------+----------+--------------------+----------+-------------------+--+----------------------------------+----------+
| | Net debt | (8.5) | | 1.7 | | - | | (6.8) | |
+----+-------------------------------------+------------+----------+--------------------+----------+-------------------+--+----------------------------------+----------+
| | | | | | | | | | | |
+----+--+-------+--------------------------+-----------------------+--------------------+----------+-------------------+--+----------------------------------+----------+
| | Net cash/(debt) | 9.5 | | 6.2 | | - | | 15.7 | |
+----+-------------------------------------+------------+----------+--------------------+----------+-------------------+--+----------------------------------+----------+
| | | | | | | | | | | | | | |
+----+--+-------+-----+---------+----------+-----------------------+--------------------+----------+--------+----------+--+----------------------------------+----------+
|10 | Provision for liabilities and charges | |
+----+-------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | | | | | | | | Unaudited | | |
+----+--+-------+-----+---------+---------------+-------+------------------------------------------+-------------------+---------------+---------------------+----------+
| | | | | | | | | | | | Total | | |
+----+--+-------+-----+---------+---------------+-------+--------------------+---------------------+--------+----------+---------------+---------------------+----------+
| | Six months ended 30 September 2010 | | | | | | GBPm | | |
+----+------------------------------------------+-------+--------------------+---------------------+--------+----------+---------------+---------------------+----------+
| | | | | | | | | | | |
+----+--+-------+-----+---------+---------------+-------+------------------------------------------+-------------------+-------------------------------------+----------+
| | At 1 April 2010 | | | 0.6 | |
+----+--------------------------------------------------+------------------------------------------+-------------------+-------------------------------------+----------+
| | Utilised during the period | | | - | |
+----+--------------------------------------------------+------------------------------------------+-------------------+-------------------------------------+----------+
| | At 30 September 2010 | | | 0.6 | |
+----+--------------------------------------------------+------------------------------------------+-------------------+-------------------------------------+----------+
| | | | | | | | | | |
+----+--+-------+-----+---------+-----------------------+------------------------------------------+-------------------+-------------------------------------+----------+
| | | | | | | | | | |
+----+--+-------+-----+---------+-----------------------+------------------------------------------+-------------------+-------------------------------------+----------+
| | | | | | | | | Unaudited | | |
+----+--+-------+-----+---------+-----------------------+------------------------------------------+-------------------+---------------+---------------------+----------+
| | | | | | | | | | Total | | |
+----+----------+-----+---------+-----------------------+--------------------+---------------------+--------+----------+---------------+---------------------+----------+
| | Six months ended 30 September 2009 | | | | | GBPm | | |
+----+--------------------------------------------------+--------------------+---------------------+--------+----------+---------------+---------------------+----------+
| | | | | | | | | | |
+----+--+-------+-----+---------+-----------------------+------------------------------------------+-------------------+-------------------------------------+----------+
| | At 1 April 2009 | | | 1.1 | |
+----+--------------------------------------------------+------------------------------------------+-------------------+-------------------------------------+----------+
| | Utilised during the period | | | (0.4) | |
+----+--------------------------------------------------+------------------------------------------+-------------------+-------------------------------------+----------+
| | At 30 September 2009 | | | 0.7 | |
+----+--------------------------------------------------+------------------------------------------+-------------------+-------------------------------------+----------+
| | | | | | | | |
+----+--------------------------+---------------+-------+------------------------------------------+-------------------+-------------------------------------+----------+
| | | | | | | Audited | | |
+----+--------------------------+---------------+-------+------------------------------------------+-------------------+--------------------------+----------+----------+
| | | Total | | |
+----+--------------------------------------------------------------------------------------------------------------------+-----------------------+----------+----------+
| | Year ended 31 March 2010 | GBPm | | |
+----+--------------------------------------------------------------------------------------------------------------------+-----------------------+----------+----------+
| | | | |
+----+--------------------------------------------------------------------------------------------------------------------+----------------------------------+----------+
| | At 1 April 2009 | 1.1 | |
+----+--------------------------------------------------------------------------------------------------------------------+----------------------------------+----------+
| | Utilised during the year | (0.5) | |
+----+--------------------------------------------------------------------------------------------------------------------+----------------------------------+----------+
| | At 31 March 2010 | 0.6 | |
+----+--------------------------------------------------------------------------------------------------------------------+----------------------------------+----------+
| | | |
| | | |
+----+-------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | Properties | |
+----+-------------------------------------------------------------------------------------------------------------------------------------------------------+----------+
| | | |
+----+---------------------------------------------------------------------------------------------------------------------------------+--------------------------------+
| | The provision for property leases relates to dilapidations on properties under leases expiring within 1 year and up to 15 | |
| | years. The properties have been inspected by the Group Property Manager, and estimates made for the anticipated dilapidation | |
| | expenditure to be incurred prior to sub-letting, or reversion of the lease. | |
+----+---------------------------------------------------------------------------------------------------------------------------------+--------------------------------+
| | | | | | | | | | | | | | | | | | | | |
+----+--+-------+-----+---------+----------+----+---+---+----------+---------+----------+----------+--------+----------+--+------------+----------+----------+----------+
+----+----------+--+---+--+------+---------+-----------+------------+------------+---------------+----------+
| 11 | Taxation | |
+---------------+--------------------------------------------------------------------------------+----------+
| | | |
+---------------+--------------------------------------------------------------------------------+----------+
| | Taxation is provided based on management's best estimate of the weighted | |
| | average annual corporation tax rate expected for the full financial year. | |
| | The estimated average annual tax rate used for the year to 31 March 2011 is | |
| | 28.8% (year to 31 March 2010: 28.9%). | |
| | | |
| | Following the passing of the Finance (No 2) Act 2010 on 20 July 2010, the | |
| | main rate of corporation tax will reduce to 27% from 28% on 1 April 2011. In | |
| | accordance with accounting standards these changes, which are regarded as | |
| | 'substantively enacted', have been reflected in these condensed consolidated | |
| | interim financial statements. | |
+---------------+--------------------------------------------------------------------------------+----------+
| | | |
+---------------+--------------------------------------------------------------------------------+----------+
| 12 | Earnings per share | |
+---------------+--------------------------------------------------------------------------------+----------+
| | | |
+---------------+--------------------------------------------------------------------------------+----------+
| | The calculation of the basic earnings per share is based on the earnings | |
| | attributable to ordinary shareholders divided by the weighted average number | |
| | of shares in issue during the year. | |
+---------------+--------------------------------------------------------------------------------+----------+
| | | |
+---------------+--------------------------------------------------------------------------------+----------+
| | The calculation of diluted earnings per share is based on the basic earnings | |
| | per share, adjusted to allow for the issue of shares on the assumed | |
| | conversion of all dilutive options. | |
+---------------+--------------------------------------------------------------------------------+----------+
| | | |
+---------------+--------------------------------------------------------------------------------+----------+
| | Earnings per share attributable to equity holders of the company arises from | |
| | continuing operations as follows: | |
+---------------+--------------------------------------------------------------------------------+----------+
| | | |
+---------------+--------------------------------------------------------------------------------+----------+
| | | | | Unaudited | Unaudited | Audited |
+---------------+--+------+----------------------------+------------+------------+--------------------------+
| | | | | Six | Six months | Year to 31 March |
| | | | | months | to | |
| | | | | to | 30 | |
| | | | | 30 | September | |
| | | | | September | | |
+---------------+--+------+----------------------------+------------+------------+--------------------------+
| | | | | 2010 | 2009 | 2010 |
+---------------+--+------+----------------------------+------------+------------+--------------------------+
| | | | | GBPm | GBPm | GBPm |
+---------------+--+------+----------------------------+------------+------------+--------------------------+
| | Profit after tax | 5.3 | 5.0 | 12.7 |
+---------------+--------------------------------------+------------+------------+--------------------------+
| | | | | | | |
+---------------+--+------+----------------------------+------------+------------+--------------------------+
| | | No. of | No. of | No. of shares |
| | | shares | shares | |
+---------------+--------------------------------------+------------+------------+--------------------------+
| | Weighted average number of shares in | 54,482,917 | 54,165,351 | 54,245,126 |
| | issue | | | |
+---------------+--------------------------------------+------------+------------+--------------------------+
| | Dilutive effect of options | 1,688,004 | 1,137,012 | 967,960 |
+---------------+--------------------------------------+------------+------------+--------------------------+
| | Diluted weighted average number of | 56,170,921 | 55,302,363 | 55,213,086 |
| | shares | | | |
+---------------+--------------------------------------+------------+------------+--------------------------+
| | | | | | | |
+---------------+--+------+----------------------------+------------+------------+--------------------------+
| | Earnings per share - basic | 9.6p | 9.2p | 23.4p |
+---------------+--------------------------------------+------------+------------+--------------------------+
| | Earnings per share - diluted | 9.3p | 9.0p | 23.0p |
+---------------+--------------------------------------+------------+------------+--------------------------+
| | | | | | | |
+---------------+--+------+----------------------------+------------+------------+--------------------------+
|13 | Dividends |
+----+------------------------------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------------------------------+
| | The final dividend for the year ended 31 March 2010 of 11.8p per share (2009: 10.8p) was paid on |
| | 23 July 2010. The GBP6.4m distribution (2009: GBP5.9m) is reflected in the financial statements |
| | for the six months ended 30 September 2010. |
+----+------------------------------------------------------------------------------------------------------+
| | | | | | | |
+----+-----------------+---------+---------+-----------+------------+---------------------------------------+
| | In addition, the directors propose an interim dividend of 6.4p per share (2009: 6.4p per share) |
| | payable on 14 January 2011 to shareholders who are on the register at 3 December 2010. This |
| | interim dividend, amounting to GBP3.5m (2009: GBP3.5m) has not been recognised as a liability in |
| | these condensed consolidated interim financial statements. |
+----+------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | |
+----+----------+--+---+--+------+---------+-----------+------------+------------+---------------+----------+
+--+-+-----+-----+------+------+--------------------------------------+
|14| Commitments and contingencies |
+--+------------------------------------------------------------------+
| | | | | | | |
+--+-+-----+-----+------+------+--------------------------------------+
| | Group capital expenditure committed, for the purchase of |
| | property, software, plant and equipment, but not provided for in |
| | these financial statements amounted to GBP1.1m (2009: GBP0.8m). |
+--+------------------------------------------------------------------+
| | | | | | | |
+--+-+-----+-----+------+------+--------------------------------------+
|15| Events occurring after the reporting period |
+--+------------------------------------------------------------------+
| | | | | | | |
+--+-+-----+-----+------+------+--------------------------------------+
| | There are no events occurring after the reporting period, other |
| | than the proposed dividend referred to in note 13. |
+--+------------------------------------------------------------------+
| | | | | | | |
+--+-+-----+-----+------+------+--------------------------------------+
|16| Related-party transactions |
+--+------------------------------------------------------------------+
| | |
+--+------------------------------------------------------------------+
| | P Kane, a director of the Company, and members of his close |
| | family and certain family trusts, the beneficiaries of which are |
| | persons connected with P Kane, control directly and indirectly |
| | 45.8% of the issued share capital of the Company. |
| | |
| | The nature of the related party transactions of the Group has |
| | not changed from those described in the Groups' 2010 Annual |
| | Report and Accounts. There were no transactions with related |
| | parties during the six months ended 30 September 2010 which have |
| | had a material effect on the results or the financial position |
| | of the Group. |
| | |
| | Transactions between the Company and its subsidiaries, which are |
| | related parties, have been eliminated on consolidation and are |
| | not disclosed in this note. |
+--+------------------------------------------------------------------+
| | | | | | |
+--+-+-----+-----+------+---------------------------------------------+
|17| Risks and uncertainties |
+--+------------------------------------------------------------------+
| | | | | | |
+--+-+-----+-----+------+---------------------------------------------+
| | The potential risks and uncertainties that may affect the |
| | Group's performance were discussed on pages 69 and 70 of the |
| | Group's Annual Report and Accounts for the 2010 financial year. |
| | These included market, credit, regulatory, price, liquidity, |
| | capital and foreign exchange risk. It is considered that these |
| | still remain the most likely areas of potential risk and |
| | uncertainty, with the position unchanged from that set out in |
| | the 2010 Annual Report and Accounts. |
+--+------------------------------------------------------------------+
| | | | | | |
+--+-+-----+-----+------+---------------------------------------------+
|18| Seasonality |
+--+------------------------------------------------------------------+
| | |
+--+------------------------------------------------------------------+
| | Historically, the Group experiences marginally greater demand |
| | for its parcels and palletised goods collection and delivery |
| | services in the second half of the year, as consignments |
| | increase in advance of the Christmas season. Such trends are |
| | not discernible within either the mail or courier markets. |
+--+------------------------------------------------------------------+
| | |
+--+-+-----+-----+------+------+--------------------------------------+
+--+------+------+------+------+------+------+------+------+--------+
| Statement of directors' responsibilities |
+-------------------------------------------------------------------+
| | | | | | | | | | |
+--+------+------+------+------+------+------+------+------+--------+
| The directors confirm that these condensed consolidated interim |
| financial statements have been prepared in accordance with IAS |
| 34, 'Interim financial reporting', as adopted by the European |
| Union, and that the interim management report includes a fair |
| review of the information required by the Disclosure and |
| Transparency Rules ('DTR') of the United Kingdom's Financial |
| Services Authority DTR 4.2.7 and DTR 4.2.8, namely: |
+-------------------------------------------------------------------+
| | | | | | | | | | |
+--+------+------+------+------+------+------+------+------+--------+
| ¦ | an indication of important events that have occurred during |
| | the first six months and their impact on the condensed |
| | consolidated interim financial statements, and a description |
| | of the principal risks and uncertainties for the remaining six |
| | months of the financial year; and |
+--+----------------------------------------------------------------+
| | | | | | | | | | |
+--+------+------+------+------+------+------+------+------+--------+
| ¦ | material related-party transactions in the first six months |
| | and any material changes in the related-party transactions |
| | described in the last annual report. |
+--+----------------------------------------------------------------+
| |
+-------------------------------------------------------------------+
| The directors of UK Mail Group plc are listed in the UK Mail |
| Group Annual Report for the year ended 31 March 2010, with the |
| exception that Michael Kane retired on 1 July 2010. A list of |
| current directors is maintained on the UK Mail Group website: |
| www.ukmail.com. |
+-------------------------------------------------------------------+
| |
+-------------------------------------------------------------------+
| By order of the Board |
+-------------------------------------------------------------------+
| | | | | | | | | | |
+--+------+------+------+------+------+------+------+------+--------+
| Guy Buswell, Chief | | | | Steven Glew, Finance |
| Executive | | | | Director |
+-----------------------+------+------+------+----------------------+
| 17 November | | | | | 17 November 2010 |
| 2010 | | | | | |
+--+------+------+------+------+------+------+------+------+--------+
+------+------+------+------+------+------+------+------+------+------+
| Independent review report to UK Mail Group plc |
+---------------------------------------------------------------------+
| | | | | | | | | | |
+------+------+------+------+------+------+------+------+------+------+
| Introduction |
+---------------------------------------------------------------------+
| |
+---------------------------------------------------------------------+
| We have been engaged by the company to review the condensed |
| consolidated interim financial statements for the six months ended |
| 30 September 2010, which comprises the Consolidated Statement of |
| Comprehensive Income, Consolidated Balance Sheet, Consolidated |
| Statement of Cash Flows, Consolidated Statement of Changes in |
| Shareholders' Equity and related notes. We have read the other |
| information contained in the interim management report and |
| considered whether it contains any apparent misstatements or |
| material inconsistencies with the information in the condensed |
| consolidated interim financial statements. |
+---------------------------------------------------------------------+
| |
+---------------------------------------------------------------------+
| Directors' responsibilities |
+---------------------------------------------------------------------+
| |
+---------------------------------------------------------------------+
| The interim financial report is the responsibility of, and has been |
| approved by, the directors. The directors are responsible for |
| preparing the interim financial report in accordance with the |
| Disclosure and Transparency Rules of the United Kingdom's Financial |
| Services Authority. |
+---------------------------------------------------------------------+
| |
+---------------------------------------------------------------------+
| As disclosed in note 2, the annual financial statements of the |
| Group are prepared in accordance with IFRSs as adopted by the |
| European Union. The condensed set of consolidated interim financial |
| statements included in this interim financial report has been |
| prepared in accordance with IAS 34, 'Interim financial reporting', |
| as adopted by the European Union. |
+---------------------------------------------------------------------+
| | | | | | | | | | |
+------+------+------+------+------+------+------+------+------+------+
| Our responsibility |
+---------------------------------------------------------------------+
| |
+---------------------------------------------------------------------+
| Our responsibility is to express to the company a conclusion on the |
| condensed consolidated interim financial statements in the interim |
| financial report based on our review. This report, including the |
| conclusion, has been prepared for and only for the company for the |
| purpose of the Disclosure and Transparency Rules of the Financial |
| Services Authority and for no other purpose. We do not, in |
| producing this report, accept or assume responsibility for any |
| other purpose or to any other person to whom this report is shown |
| or into whose hands it may come save where expressly agreed by our |
| prior consent in writing. |
+---------------------------------------------------------------------+
| |
+---------------------------------------------------------------------+
| Scope of review |
+---------------------------------------------------------------------+
| |
+---------------------------------------------------------------------+
| We conducted our review in accordance with International Standard |
| on Review Engagements (UK and Ireland) 2410, 'Review of Interim |
| Financial Information Performed by the Independent Auditor of the |
| Entity' issued by the Auditing Practices Board for use in the |
| United Kingdom. A review of interim financial information consists |
| of making enquiries, primarily of persons responsible for financial |
| and accounting matters, and applying analytical and other review |
| procedures. A review is substantially less in scope than an audit |
| conducted in accordance with International Standards on Auditing |
| (UK and Ireland) and consequently does not enable us to obtain |
| assurance that we would become aware of all significant matters |
| that might be identified in an audit. Accordingly, we do not |
| express an audit opinion. |
+------+------+------+------+------+------+------+------+------+------+
+----------------------------------------------------------------------+
| Conclusion |
+----------------------------------------------------------------------+
| |
+----------------------------------------------------------------------+
| Based on our review, nothing has come to our attention that causes |
| us to believe that the condensed set of consolidated interim |
| financial statements in the interim financial report for the six |
| months ended 30 September 2010 is not prepared, in all material |
| respects, in accordance with IAS 34 as adopted by the European Union |
| and the Disclosure and Transparency Rules of the United Kingdom's |
| Financial Services Authority. |
+----------------------------------------------------------------------+
| |
+----------------------------------------------------------------------+
| |
+----------------------------------------------------------------------+
| |
+----------------------------------------------------------------------+
| |
+----------------------------------------------------------------------+
| |
+----------------------------------------------------------------------+
| PricewaterhouseCoopers LLP |
+----------------------------------------------------------------------+
| Chartered Accountants |
+----------------------------------------------------------------------+
| Thames Valley |
+----------------------------------------------------------------------+
| 17 November 2010 |
+----------------------------------------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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