Menu
17/11/2005
Royal Mail profits boosted by parcels
Royal Mail has reported a rise in profits, despite a seeing a fall in earnings in its letter business.
The group reported a 20.5% increase in operating profit to £159 million for the first half of 2005/06 – a £27 million improvement on the same period the previous year.
However, the Royal Mail’s letters business, which accounts for around 76% of the group’s revenue, made an operating profit of £168 million – a decrease of 3% on last year’s figures.
The fall came despite a below-inflation 1.8% overall rise in postage prices at the beginning of April.
However, the group’s European parcels business, General Logistics Systems and Parcelforce Worldwide, performed better financially. GLS performed particularly strongly with a £43 million operating profit in the first half of the year – almost double the £23 million profit in the same period a year earlier. Allan Leighton, Royal Mail Group Chairman, described GLS as the “star performer”, with “an impressive record of revenue and profit growth”.
Parcelforce Worldwide also increased its external turnover by £10 million, despite “increasingly tough conditions” in its market, Royal Mail reported.
Mr Leighton said: “These latest results underline the massive and unprecedented challenges facing Royal Mail.
“We’ve come a long way since we launched the Renewal Plan in 2002 when the company was losing more than £1 million every day.
“But in just over a month’s time the postal market opens to full competition and Royal Mail is facing the prospect of the regulator imposing a price control, which will undo the remarkable turnaround achieved in the last three years by our people.”
Royal Mail has been opposed to plans by the postal regular, Postcomm, to put a cap on the price of stamps, meaning that first-class stamps could rise to no more than 34p by 2010.
Adam Crozier, Royal Mail’s Chief Executive, said: “Royal Mail needs to have a fair and balanced pricing structure to compete for business mail. Instead, the regulator is proposing a pricing straightjacket.”
The UK postal market is due to be opened to full competition on January 1.
(KMcA/SP)
The group reported a 20.5% increase in operating profit to £159 million for the first half of 2005/06 – a £27 million improvement on the same period the previous year.
However, the Royal Mail’s letters business, which accounts for around 76% of the group’s revenue, made an operating profit of £168 million – a decrease of 3% on last year’s figures.
The fall came despite a below-inflation 1.8% overall rise in postage prices at the beginning of April.
However, the group’s European parcels business, General Logistics Systems and Parcelforce Worldwide, performed better financially. GLS performed particularly strongly with a £43 million operating profit in the first half of the year – almost double the £23 million profit in the same period a year earlier. Allan Leighton, Royal Mail Group Chairman, described GLS as the “star performer”, with “an impressive record of revenue and profit growth”.
Parcelforce Worldwide also increased its external turnover by £10 million, despite “increasingly tough conditions” in its market, Royal Mail reported.
Mr Leighton said: “These latest results underline the massive and unprecedented challenges facing Royal Mail.
“We’ve come a long way since we launched the Renewal Plan in 2002 when the company was losing more than £1 million every day.
“But in just over a month’s time the postal market opens to full competition and Royal Mail is facing the prospect of the regulator imposing a price control, which will undo the remarkable turnaround achieved in the last three years by our people.”
Royal Mail has been opposed to plans by the postal regular, Postcomm, to put a cap on the price of stamps, meaning that first-class stamps could rise to no more than 34p by 2010.
Adam Crozier, Royal Mail’s Chief Executive, said: “Royal Mail needs to have a fair and balanced pricing structure to compete for business mail. Instead, the regulator is proposing a pricing straightjacket.”
The UK postal market is due to be opened to full competition on January 1.
(KMcA/SP)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
17 May 2005
Royal Mail workers benefit from record profits
Royal Mail workers are set to receive bonuses of £1,074, following the announcement of record profits of £537 million for the year 2004-05. The national mail service reported the record profits today – an increase of 144% on the £220 million profits announced in the last financial year.
Royal Mail workers benefit from record profits
Royal Mail workers are set to receive bonuses of £1,074, following the announcement of record profits of £537 million for the year 2004-05. The national mail service reported the record profits today – an increase of 144% on the £220 million profits announced in the last financial year.
10 February 2006
Missing post costs Royal Mail £11.7m
Postal services watchdog, Postcomm, is proposing to fine Royal Mail £11.7m over "serious breaches" of its licence obligations to protect the mail and deliver it on time. Launched in 2004, the Postcomm review found that important features of Royal Mail's procedures were not being applied across the business.
Missing post costs Royal Mail £11.7m
Postal services watchdog, Postcomm, is proposing to fine Royal Mail £11.7m over "serious breaches" of its licence obligations to protect the mail and deliver it on time. Launched in 2004, the Postcomm review found that important features of Royal Mail's procedures were not being applied across the business.
27 February 2004
Royal Mail puts in 'poor' performance
The Royal Mail has performed poorly and is "unlikely" to meet any of the 15 minimum performance targets set out in its licence, according to the mail watchdog Postwatch. Postwatch said that Royal Mail’s third quarter performance was badly affected by unofficial industrial action, and would not meet its targets.
Royal Mail puts in 'poor' performance
The Royal Mail has performed poorly and is "unlikely" to meet any of the 15 minimum performance targets set out in its licence, according to the mail watchdog Postwatch. Postwatch said that Royal Mail’s third quarter performance was badly affected by unofficial industrial action, and would not meet its targets.
12 December 2003
3,000 managers to go at Royal Mail
Up to 3,000 "non-operational managers" are expected to leave Royal Mail under a voluntary redundancy programme launched by the company today. All of the job losses will be part of the 30,000 jobs which Royal Mail has already announced will be made redundant during the company’s "three-year turnaround plan".
3,000 managers to go at Royal Mail
Up to 3,000 "non-operational managers" are expected to leave Royal Mail under a voluntary redundancy programme launched by the company today. All of the job losses will be part of the 30,000 jobs which Royal Mail has already announced will be made redundant during the company’s "three-year turnaround plan".
13 November 2003
'Operational changes' stressed as Royal Mail returns £3m profit
Royal Mail has declared a pre-tax profit of £3 million for the first half-year the financial year for the first time in five years. The company returned a £55 million profit on day-to-day operations, compared to a £147 million loss in the same period last year, although the trading profit amounted to a return of 1.
'Operational changes' stressed as Royal Mail returns £3m profit
Royal Mail has declared a pre-tax profit of £3 million for the first half-year the financial year for the first time in five years. The company returned a £55 million profit on day-to-day operations, compared to a £147 million loss in the same period last year, although the trading profit amounted to a return of 1.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
