Delivery business in 'good shape'

Royal Mail profits slump over costs

Royal Mail boxes woman newRoyal Mail saw pre-tax profits slump by 33% to £267 million as it took a hit from the cost of turning around the business.

Revenue in the UK business fell 1% to £7.6 billion as letter volumes and revenue fell by 3% and 2% respectively. Parcel volume grew 3% although revenue was just 1% higher.

The company said the fall in profit was a result of one-off items, such as pension charges, that distorted its balance sheet.

However, group revenue rose 1% to £9.2 billion as chief executive Moya Greene hailed a “resilient performance”

The company has embarked on a big cost-cutting drive and has reduced its headcount by 3,500 over the year.

Ms Greene said: “We are introducing new and improved products and services and responding quickly to changing customer needs.

“These measures, alongside our emphasis on customer focus and delivering a value for money service, have helped us to maintain our pre-eminent position in UK letters and parcels and driven growth.”

Photo: by Terry Murden (copyright)


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