This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-33605676

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Royal Mail reports flat revenues Royal Mail reports flat revenues
(about 11 hours later)
Royal Mail has reported flat revenues in the three months to 28 June as UK letter volumes continued to decline.Royal Mail has reported flat revenues in the three months to 28 June as UK letter volumes continued to decline.
The trading update comes ahead of the final sell off of the government's 15% stake in the 500-year old company. The trading update comes ahead of the final sale of the government's 15% stake in the 500-year old company.
Royal Mail said UK letter volumes declined by 5% in the quarter with revenue down 4%. But that was in line with forecasts.Royal Mail said UK letter volumes declined by 5% in the quarter with revenue down 4%. But that was in line with forecasts.
UK parcel volumes were 3% higher and rose by 9% in Europe, with revenue up 2% and 8% respectively.UK parcel volumes were 3% higher and rose by 9% in Europe, with revenue up 2% and 8% respectively.
The company said its outlook for letter and parcel volumes remained "unchanged" from that issued when it published its annual results in May. The company said its outlook for letter and parcel volumes remained unchanged from guidance issued with its annual results in May.
Royal Mail said it remained focused on driving costs at its UK business lower this year. Royal Mail said it remained focused on cutting costs at its UK business this year.
It added that, as in all previous years, its performance would be weighted to the second half of the year and would be dependant on its traditionally busy Christmas parcels delivery period. It added that, as in all previous years, its performance would be weighted to the second half of the year given the dependence on its traditionally busy Christmas parcels delivery period.
'Challenging' trading'Challenging' trading
Royal Mail's European parcel deliveries service, GLS, performed better than expected, the group said, largely driven by strong growth in Italy and Germany.Royal Mail's European parcel deliveries service, GLS, performed better than expected, the group said, largely driven by strong growth in Italy and Germany.
But the company added it was monitoring how the market reacted to changes to German minimum wage legislation, and said it continued to believe GSL profit margins would be affected "by around 50 - 100 basis points" this year. But the company added it was monitoring how the market reacted to changes to German minimum wage legislation.
Royal Mail chief executive Moya Greene, warned the company's trading environment remained "challenging", adding Royal Mail was "stepping up the pace of change to drive growth, efficiency and innovation while maintaining a tight focus on costs". Royal Mail chief executive Moya Greene warned that the trading environment remained "challenging".
Last month, regulator Ofcom said the regulation of Royal Mail would be reviewed by Ofcom after the withdrawal of rival Whistl from the direct delivery letters market, which removed any national competition for direct delivery of letters. The company was "stepping up the pace of change to drive growth, efficiency and innovation while maintaining a tight focus on costs".
Last month, regulator Ofcom said the regulation of Royal Mail would be reviewed after the withdrawal of rival Whistl from the direct delivery letters market. That removed any national competition for the direct delivery of letters.
Ofcom said the "fundamental" review would "ensure regulation remains appropriate and sufficient to secure the universal postal service".Ofcom said the "fundamental" review would "ensure regulation remains appropriate and sufficient to secure the universal postal service".
The government sold half of its remaining 30% stake in Royal Mail in June, raising £750m for the Exchequer. The government sold half of its remaining 30% stake in Royal Mail in June, raising £750m for the Treasury.
In May, Royal Mail reported an increase in full-year profits to £740m, up 6% from a year earlier.In May, Royal Mail reported an increase in full-year profits to £740m, up 6% from a year earlier.
Workers' shares
The Department for Business Industry and Skills also outlined its plan to hand 10 million shares - worth about 1% of the company - to employees this financial year.
GLS employees will be excluded from the scheme, as will employees at joint ventures.
Workers must also stay for three years after receiving their share allocation to be able to keep them, unless they retire, take redundancy, leave through illness or die.
Shares in Royal Mail closed down 0.3% at 510 pence per share, valuing the holding being distributed to workers at £51m.
Divided by 130,100 staff, the shares would be valued at about £392.