MaltaPost Plc

Annual / Quarterly Financial Statement • Dec 9, 2014

COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by MaltaPost p.l.c. pursuant to the Malta Financial Services Authority Listing Rules:

QUOTE

The Board of Directors of MaltaPost p.l.c. (the Company) has approved the attached Preliminary Statement of Annual Results as extracted from the Company's Financial Statements for the year ended 30 September 2014 that were audited by PricewaterhouseCoopers and approved by the Board of Directors on 9 December 2014. The Board resolved that these audited Financial Statements be submitted for approval of the shareholders at the forthcoming Annual General Meeting scheduled for 16 January 2015.

The Board of Directors further resolved to recommend for the approval of the Annual General Meeting:

• 1. The payment of a final ordinary net dividend of €0.04 per nominal €0.25 share.
• 1. The option to shareholders of receiving the dividend either in cash or by the issue of new shares. The Attribution Price, at which the number of new shares to be issued will be determined, has been established at €1.16 per nominal €0.25 share.

Shareholders on the Company's share register at the Central Securities Depository of the Malta Stock Exchange as at close of business on the 17 December 2014 will receive notice of the Annual General Meeting together with the Financial Statements for the financial year ended 30 September 2014.

The final dividend, if approved at the Annual General Meeting, will be paid on 30 January 2015 to shareholders on the Company's share register at the Central Securities Depository of the Malta Stock Exchange as at close of business on 17 December 2014.

UNQUOTE

Graham A. Fairclough Company Secretary

9 December 2014

The following figures are extracted from the audited Financial Statements of MaltaPost p.l.c. for the financial year ended 30 September 2014. These Financial Statements were prepared in accordance with the Companies Act 1995, audited by PricewaterhouseCoopers and approved by the Directors on 9 December 2014.

Review of performance

MaltaPost performed soundly during the financial year ended 30 September 2014 registering positive results despite a rising cost-base that is inherently linked to its Universal Service Obligations.

• Profit before tax increased by 37.5% to €2.74m (2013: €1.99m);
• Turnover increased by 9.6% to €23.72m (2013: €21.64m). Volume increases in the parcel sector contributed positively to the increase in revenues. Whereas the decrease in traditional Letter Mail volumes continued in line with international industry trends, the revision of certain tariffs as from January 2014 helped mitigate the cost of providing a service in this declining sector.
• Expenses increased by 6.6% to €21.19m (2013: €19.88m) mainly as a result of a higher spend related to cross-border mail delivery and staff costs;
• Cost to income ratio stood at 89.3% (2013: 91.8%);
• Total assets increased by 1.2% to €30.78m (2013: €30.43m);
• Shareholders funds increased by 9.5% to €18.22m (2013: €16.63m);

Outlook

MaltaPost remains focused on securing a reasonable share of the growing parcels market, while enhancing and consolidating a diversified portfolio of services to counter the irreversible decline in Letter Mail volumes. Consequently, the Company continues to invest in resources and by keeping abreast of consumer trends so as to maintain high service levels.

While more remunerative and diversified revenue streams are being identified, the high fixed cost base of the Universal Service Obligation needs to be re-evaluated so as to ensure its long-term sustainability.

The Board of Directors believes that the Company should remain focused on pursuing its diversification strategy so to provide an efficient and affordable portfolio of products that exceeds customer expectations, while also enhancing shareholder value. The Board also registered its appreciation of staff commitment and dedication as well as customer support.

MaltaPost p.l.c. Preliminary Statement of Annual Results For the year ended 30 September 2014

Statement of Financial Position At 30 September 2014

	2014 €'000	2013 €'000 (restated) 1
ASSETS
Non-current assets
Property, plant and equipment	11,795	10,320
Available-for-sale financial assets	3,282	2,598
Deferred income tax asset	335	394
Total non-current assets	15,412	13,312
Current assets
Inventories	653	602
Trade and other receivables	6,893	5,319
Current income tax asset	376	513
Available-for-sale financial assets	-	465
Deposits with financial institutions	1,645	1,500
Cash and cash equivalents	5,805	8,714
Total current assets	15,372	17,113
Total assets	30,784	30,425
EQUITY AND LIABILITIES
Capital and reserves
Share capital	8,820	8,554
Share premium	4,310	3,439
Other reserves	132	114
Retained earnings	4,956	4,526
Total equity	18,218	16,633
Non-current liabilities
Provision for liabilities and charges	1,592	1,547
Current liabilities
Trade and other payables	10,974	12,245
Total liabilities	12,566	13,792
Total equity and liabilities	30,784	30,425

Income Statement For the year ended 30 September 2014

	2014 €'000	2013 €'000 (restated) 1
Revenue	23,723	21,638
Employee benefits expense Depreciation and amortisation expense	(11,314) (723)	(10,952) (956)
Other expenses	(9,156)	(7,972)
Operating profit Finance income	2,530 206	1,758 231
Profit before tax Tax expense	2,736 (937)	1,989 (692)
Profit for the year	1,799	1,297
Earnings per share	€0.05	€0.04

Statement of Comprehensive Income For the year ended 30 September 2014

	2014 €'000	2013 €'000 1 (restated)
Comprehensive income
Profit for the year	1,799	1,297
Other comprehensive income Items that may be subsequently reclassified to profit or loss
Available-for-sale financial assets: Gains from changes in fair value	151	39
Items that will not be reclassified to profit or loss Remeasurements of defined benefit obligations	(133)	(39)
Total other comprehensive income for the year --	18	-
Total comprehensive income for the year	1,817	1,297

Statement of Changes in Equity At 30 September 2014

	Attributable to equity shareholders
	Share	Share	Other	Retained
	capital	premium	reserves	earnings	Total
	€'000	€'000	€'000	€'000	€'000
Balance at 1 October 2012
- As previously reported - Effect of change in accounting policy upon	8,172	2,752	94	4,557	15,575
adoption of IAS 19 (revised)		-	20	(20)	-
As restated1 -	8,172	2,752	114	4,537	15,575
Comprehensive income 1 Profit for the year (restated)	-	-	-	1,297	1,297
Other comprehensive 1 income (restated) Available-for-sale financial assets:
Gains from changes in fair value	-	-	39	-	39
Remeasurements of defined benefit obligations	-	-	(39)	-	(39)
Total other comprehensive 1 income (restated)	-	-	-	-	-
Total comprehensive income 1 (restated)	-	-	-	1,297	1,297
Transactions with owners
Allotment of shares	382	687	-	-	1,069
Dividends	-	-	-	(1,308)	(1,308)
Total transactions with owners	382	687	-	(1,308)	(239)
Balance at 30 September
1 2013 (restated)	8,554	3,439	114	4,526	16,633

Statement of Changes in Equity - continued At 30 September 2014

	Attributable to equity shareholders
	Share	Share	Other	Retained
	capital	premium	reserves	earnings	Total
	€'000	€'000	€'000	€'000	€'000
Balance at 1 October
1 2013 (restated)	8,554	3,439	114	4,526	16,633
Comprehensive income
Profit for the year	-	-	-	1,799	1,799
Other comprehensive
income
Available-for-sale financial
assets:
Gains from changes in fair	-	-	151	-	151
value
Remeasurements of defined
benefit obligations	-	-	(133)	-	(133)
Total other comprehensive
income	-	-	18	-	18
Total comprehensive income			18	1,799	1,817
Transactions with owners
Allotment of shares	266	871	-	-	1,137
Dividends	-	-	-	(1,369)	(1,369)
Total transactions with
owners	266	871	-	(1,369)	(232)
Balance at 30 September
2014	8,820	4,310	132	4,956	18,218

Statement of Cash Flows For the year ended 30 September 2014

	2014 €'000	2013 €'000
Cash flows from operating activities
Cash from customers	22,440	22,104
Cash paid to suppliers and employees	(20,762)	(18,974)
Cash flows attributable to funds collected on behalf of third
parties	(1,768)	(306)
Cash flows from operating activities	(90)	2,824
Income tax paid	(743)	(409)
Net cash (used in)/generated from operating activities	(833)	2,415
Cash flows from investing activities Finance income	212	229
Purchase of property, plant and equipment	(1,866)	(1,098)
Purchase of financial assets	(638)	(640)
Proceeds on maturity/disposal of financial assets	578	411
Placement of deposits with financial institutions	(145)	(1,500)
Proceeds from maturity of deposits with financial institutions	-	3,000
Net cash (used in)/generated from investing
activities	(1,859)	402
Cash flows from financing activities
Dividends paid	(217)	(236)
Net cash used in financing activities	(217)	(236)
Net movement in cash and cash equivalents	(2,909)	2,581
Cash and cash equivalents at beginning of year	8,714	6,133
Cash and cash equivalents at end of year	5,805	8,714