Royal Mail reiterated its earnings guidance for the year through March 2020 but said it wouldn't pay a final dividend, as it braces for the Covid-19 crisis to hit hard this coming financial year.
Adjusted operating profit for the 12 months to 31 March 2020 was still seen at between £300m and £340m.
However, for the upcoming financial year, Royal Mail said there was potential for 'sharp and sustained economic downturns' in many of its core markets.
'Due to the rapidly-evolving and fluid nature of the Covid-19 pandemic, it is too early to accurately predict the impact,' the company said.
However, it added that it was likely its UK parcels, international and letters business would be 'materially loss making' in the 2021 financial year, with the profitability at GLS significantly reduced.
Royal Mail also warned that it believed it would now take longer than expected for it to hit its 2024 targets.
'We have a strong balance sheet,' chief executive Rico Back said.
'We have substantial levels of liquidity and low levels of debt.'
'We are taking immediate steps to further reduce our costs and protect our cash flow.'
At 1:24pm: (LON:RMG) Royal Mail PLC share price was -24.2p at 137.75p