Postal firm Royal Mail said it expected underlying operating costs for its UK letters and parcels business to be at least 1 per cent lower for the full year after it posted flat revenue for the first half.
The company posted revenue of £4.4bn for the six months ended September 27, in line with analyst expectations. Adjusted pre-tax profit fell 16 per cent to £240m, it said.
Royal Mail, privatised in 2013, said it had delivered a “resilient” performance in the six months ended September 27, in a competitive trading environment.
Moya Greene, chief executive officer of Royal Mail, said: “We have delivered a resilient performance in the first half, demonstrating our ability to respond to a competitive trading environment.
“We delivered parcel volume and revenue growth in the UK, which continues to be a challenging market. Addressed letter volume decline was at the better end of our forecast range.
“We are driving through a range of product innovations and service improvements at pace, as well as targeting new areas of growth and enhancing our offering.”
Ms Greene added: “As in previous years, the full year outcome will be dependent on our important Christmas period, for which we have extensive preparations in place.”