International Distribution Services (IDS) posted an 8.2% rise in revenue over the first quarter, to £3.3bn. Revenue was driven by both of IDS’s businesses, Royal Mail and GLS.
Royal Mail's revenue grew by 11.2%, benefitting from election-related mail. Addressed letters, which strip out most of the election mail, saw volumes drop 4%. Parcel volumes rose 11%. Growth was also flattered by the fact last year’s comparable periods were impacted by strike actions. Royal Mail's underlying operating profit is expected to turn positive in 2024-25.
GLS grew both revenue and volumes, up 4.8% and 5.0% respectively. There was revenue growth in almost all markets, with a turnaround in the US making progress.
Regarding the ongoing takeover offer, Bidco, the prospective buyer of IDS, has only received 3.37% in valid acceptances. This takes the current acceptance level to 30.93% when including the shares held by Bidco and its associates. Bidco needs at least 50% to be able to proceed, the IDS board is recommending shareholders accept the offer.
The shares were flat in early trading.
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IDS key facts
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