GLS, Royal Mail’s European parcel subsidiary, improved profits (Ebitda) by 15.4 % to EUR 179.4million for the 2006-07 fiscal year ending on 31 March.
Revenues increased by 4.3% to EUR 1.6 billion, as the company invested EUR 75 million in newhubs and depots in Germany, France, Denmark and Hungary.
“For 2007-08 we expect a continuous, intensive competitive market situation,” said CEO RicoBack. “On the strength of investment in network infrastructure and information technology systems,as well as acquisitions, GLS is well-placed to meet the challenge with success.”
The company’s international business grew 20% last year, a direct consequence of thestrengthening of its European network, it said in a statement to media yesterday.
It took over ABX Belgium Distribution in December, strengthening its Benelux presence, andset up three new franchises in Italy taking its number of outlets in the country to 21.
GLS has also invested strongly in IT, introducing 12,000 new scanners to improve its onlinetracking capability.
Its aim is to boost revenues to EUR 2 billion and profits to EUR 200 million by 2009. Thisyear it is planning to strengthen operations in Spain, and further in Italy, while entering theRomanian market.
