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Group five year summary (unaudited)

The following information has been prepared on a 52 week basis and excludes, for the 2012 to 2013 comparative years, the Group’s former Post Office Limited (POL) subsidiary, which was transferred to Royal Mail Holdings plc (subsequently renamed Postal Services Holding Company Limited) on 1 April 2012. The Directors are of the view that this presentation provides a meaningful comparative history of the current Group excluding POL.

This five year summary includes the financial performance and position of the DPD SL subsidiary, up to and including the 2014 reporting year, after which time it was sold (on 31 March 2015).

Income statement - Adjusted
Financial reporting year (52 weeks) ended March
Income statement - Adjusted2016 £m2015 £m2014 £m2013 £m2012 £m
Operating profit before transformation costs742740729595372
Transformation costs(191)(145)(241)(195)(229)
Operating profit after transformation costs551595488400143
Finance costs(13)(26)(67)(99)(100)
Profit before tax53856942130143
Profit after tax42043131122030
Thumbnail of the Income statement - Adjusted table
Financial reporting year (52 weeks) ended March
Income statement - Reported2016 £m2015 £m2014 £m2013 £m2012 £m
Operating profit before transformation costs485611671598381
Transformation costs(191)(145)(241)(195)(229)
Operating profit after transformation costs294466430403152
Operating specific items(156)(248)1,213(77)(57)
Non-operating specific items29133214182
Earnings before interest and tax (EBIT)1673511,664330227
Finance income/(costs) - mainly net pension interest (non-operating specific item)113756952(230)
Finance costs(13)(26)(67)(99)(100)
Profit/(loss) before tax2674001,666283(53)
Tax (specific items and other)(45)(72)(386)246(51)
Profit/(loss) after tax2223281,280529(104)
Thumbnail of the Income statement - Reported table
Financial reporting year (52 weeks) ended March
Free cash flow12016 £m2015 £m2014 £m2013 £m2012 £m
EBITDA before transformation costs756889940915681
Pension charge to cash difference25712958(3)(9)
Adjusted EBITDA before transformation costs1,0131,018998912672
Trading working capital movements(26)(5)(57)(60)(19)
Total investment(694)(648)(617)(665)(615)
Other (dividends, tax, interest)(39)(50)(67)(81)(87)
In-year trading cash inflow/(outflow)254315257106(49)
Other working capital movements617140202-
Cash cost of operating specific items(6)(8)(35)(26)(37)
Proceeds from disposal of assets/business381293652240
Free cash inflow292453398334154
Thumbnail of the Free cash flow table
  1. An explanation of free cash flow is provided in the Financial Review
At March financial reporting year end date
Balance sheet2016 £m2015 1 £m2014 £m2013 £m2012 £m
Property, plant and equipment2,0001,9331,9891,9161,822
Intangible assets (mainly software)451300195139135
Trade and other receivables1,0389609391,0121,036
Trade and other payables(1,741)(1,708)(1,683)(1,647)(1,548)
Other net (liabilities)/assets(16)(31)(20)-4
Goodwill (mainly relates to GLS)206182197196189
Investments in associates95433
Net operating assets and investments in associates1,7211,4081,3751,3971,456
Cash and cash equivalents368287366351473
Pension escrow investments20202020149
Loans and borrowings(392)(366)(600)(973)(1,522)
Other net financial liabilities(220)(216)(341)(304)(286)
Net debt(224)(275)(555)(906)(1,186)
Deferred tax (liabilities)/assets(460)(504)(175)89(9)
Net assets before pension deficit and pension escrow investments1,037629645580261
Pension surplus/(deficit)3,4303,3671,889825(2,716)
Net assets/(liabilities) 14,4673,9962,5341,405(2,455)
Thumbnail of the Balance sheet table
  1. Restated at 29 March 2015 for change in accounting policy relating to Pensions administration costs
Financial reporting year (52 weeks) ended March
People numbers – year end employees20162015201420132012
UK partially owned subsidiaries3,1363,1993,9994,0303,926
Group total156,535160,518166,251167,616168,444
Thumbnail of the People numbers table

Shareholder information

Financial calendar

Trading update - 19 July 2016
Annual General Meeting - 21 July 2016

Dividend dates

Ex-dividend date - 30 June 2016
Record date - 1 July 2016
Payment date - 29 July 2016

Shareholder information online

The Company’s registrars, Equiniti, are able to notify shareholders by email of the availability of an electronic version of shareholder information.

Whenever new shareholder information becomes available, such as the Company’s half year and full year results, Equiniti will notify you by email and you will be able to access, read and print documents at your own convenience.

To take advantage of this service for future communications, please go to and select ‘Shareholder Services’, where full details of the shareholder portfolio service are provided. When registering for this service, you will need to have your 11-digit shareholder reference number to hand, which is shown on your dividend tax voucher, share certificate or form of proxy.

Should you change your mind at a later date, you may amend your request to receive electronic communication by entering your shareview portfolio online and amending your preferred method of communication from ‘email’ to ‘post’.

Shareholder fraud

Fraudsters use persuasive and high-pressure tactics to lure investors into scams. They may offer to sell shares that turn out to be worthless or non-existent, or to buy shares at an inflated price in return for an upfront payment. While high profits are promised, if you buy or sell shares in this way, you will probably lose your money.

5,000 people contact the Financial Conduct Authority (FCA) about share fraud each year, with victims losing an average of £20,000. If you are approached by fraudsters please tell the FCA using the share fraud reporting form at, where you can find out more about investment scams. You can also call the FCA Consumer Helpline on 0800 111 6768. If you have already paid money to share fraudsters you should contact Action Fraud on 0300 123 2040.

Corporate Brokers and Financial Advisers

Barclays Bank plc, The North Colonnade, London, E14 4BB

Bank of America Merrill Lynch, 2 King Edward Street, London, EC1A 1HQ.

Independent auditor

KPMG LLP, 15 Canada Square, London E14 5GL

Trustee of The Royal Mail Share Incentive Plan

Equiniti Share Plan Trustees Limited, Aspect House, Spencer Road,
Lancing, West Sussex, BN99 6DA
Tel: 0800 012 1213

Information for investors

Information for investors is provided on the internet as part of the Group’s website which can be found at:

Investor enquiries

Enquiries can be directed via our website or by contacting:


Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA Tel: 0371 384 2656 (from outside the UK: +44 (0)121 415 7086) Lines are open 8.30am to 5.30pm UK time, Monday to Friday, excluding public holidays in England and Wales.

Registered office

Royal Mail plc
100 Victoria Embankment
London EC4Y 0HQ Registered in England and Wales
Company number 08680755

Corporate websites

Information made available on the Group’s websites does not, and is not intended to, form part of these Results.

Royal Mail, the Cruciform and the Parcelforce Worldwide logo are registered trademarks of Royal Mail Group Limited. The GLS arrow logo is a registered trade mark of General Logistics Systems Germany GmbH & Co. OHG. Annual Report 2015-16 © Royal Mail Group Limited 2016. All rights reserved.

Forward-looking statements


This document contains certain forward-looking statements concerning the Group’s business, financial condition, results of operations and certain of the Group’s plans, objectives, assumptions, projections, expectations or beliefs with respect to these items. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as ‘anticipates’, ‘aims’, ‘due’, ‘could’, ‘may’, ‘will’, ‘should’, ‘expects’, ‘believes’, ‘intends’, ‘plans’, ‘potential’, ‘targets’, ‘goal’ or ‘estimates’.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the Group’s actual financial condition, performance and results to differ materially from the plans, goals, objectives and expectations set out in the forward-looking statements included in this document. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.

By their nature, forward-looking statements relate to events and depend on circumstances that will occur in the future and are inherently unpredictable. Such forward-looking statements should, therefore, be considered in light of various important factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, among other things: changes in the economies and markets in which the Group operates; changes in the regulatory regime within which the Group operates; changes in interest and exchange rates; the impact of competitive products and pricing; the occurrence of major operational problems; the loss of major customers; undertakings and guarantees relating to pension funds; contingent liabilities; the impact of legal or other proceedings against, or which otherwise affect, the Group; and risks associated with the Group’s overseas operations.

All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to the Group or any persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. No assurance can be given that the forward-looking statements in this document will be realised; actual events or results may differ materially as a result of risks and uncertainties facing the Group. Subject to compliance with applicable law and regulation, the Company does not intend to update the forward-looking statements in this document to reflect events or circumstances after the date of this document, and does not undertake any obligation to do so.