National postal carrier MaltaPost has reported a 37.5 per cent increase in profits before taxation for the financial year ended on 30 September 2014. 

It has also recommended the payment of a final ordinary net dividend of €0.04 per nominal €0.25 share, and has presented shareholders with option 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.

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.

Overall, the company reports it had performed soundly during the financial year, registering positive results despite a rising cost-base that is inherently linked to its Universal Service Obligations.

Profit before tax increased by 37.5 per cent to €2.74 million and turnover increased by 9.6 per cent to €23.72 million.

The company explained that 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 per cent to €21.19 million, mainly as a result of a higher spend related to cross-border mail delivery and staff costs, while the company's cost to income ratio stood at 89.3 per cent.

MaltaPost's total assets increased by 1.2 per cent to €30.78 million, and shareholders' funds increased by 9.5 per cent to €18.22 million.

MaltaPost said it "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."

It added that 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 said it 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.