Royal Mail announces £211m profits

[TrueBlueTerrier]

http://www.rte.ie/news/2012/0629/royal- ... round.html" onclick="window.open(this.href);return false;

Britain's state-owned Royal Mail posted a first profit in four years at its core letters and parcels business.

This helped its annual earnings more than quadruple as the group shapes up for privatisation.

The postal operator, edging toward a sale or flotation in early 2014, said today it made a group operating profit after modernisation costs of £211m sterling in the year to March 25.

This was up from £39m a year earlier.

Royal Mail's UK parcels and letter business has struggled in recent years as customers increasingly turn to email, but improvements to its sorting processes, staff reductions and price increases helped the unit swing to an operating profit of £23m from a loss of £120m a year ago.

The group, which delivers around 59 million items a day to 29 million UK addresses, said it was now cash positive for the first time in four years, holding £234m, boosted by the proceeds from disposals.

Royal Mail, which has shed around 50,000 staff in the last decade, said profit at its European parcels business GLS and Post Office branch network were up 8% and 3%, respectively.

"We expect that continued growth in online retailing will benefit our domestic and international parcels businesses. The decline in our core letters business is expected to continue. We will press on with our modernisation programme, cutting costs in the network," chief executive Moya Greene said in a statement.

Momentum behind Royal Mail's privatisation has gathered pace this year with the European Commission clearing government to take on its hefty pension fund. It also received approval to rise stamp prices to help stem losses from declining letter volumes.

Under the privatisation plans employees will get a stake of at least 10%, while the Post Office network will remain in the public sector and may be mutualised.

[5plusbonusball]

Didn't we all expect them to make a profit the day after we got paid off due to the shares not making a profit!

[flaminmoses]

whats the fraud squads number?

[TrueBlueTerrier]

http://www.independent.co.uk/news/busin ... 99421.html" onclick="window.open(this.href);return false;

The Royal Mail posted improved profits of £211 million today, saying it was on the way to restoring the group's financial health.

Revenues increased by 4% to £9.5 billion in the last financial year and the Royal Mail Group said it was cash-positive for the first time in four years

The core postal business, which delivers the six-days-a-week universal service to 29 million addresses, is back in the black after four successive years of losses, making a profit of £23 million on revenues of £7.2 billion, up from a loss of £120 million last year.

The group's operating margin after modernisation costs improved to 2.2% from 0.4% last year, to £211 million from £39million.

The group's European parcels business GLS and the Post Office business accounted for 89% of the profits after modernisation costs.

GLS increased revenues by 5% to £1.6 billion and profits were up 8% to £128 million, while Post Office Limited revenues grew by 3% to £801 million, making profits of £59 million.

Royal Mail said it was now a going concern after the Government took on its pension liabilities under moves to part-privatise the business.

Moya Greene, Royal Mail's chief executive, said: "Royal Mail Group has made significant progress over the last year successfully addressing cash flow, profitability and balance sheet issues. We are cash-positive for the first time in four years, our profitability is improving and we no longer have going concern issues.

"We have a clear strategy in place and it is delivering results. We are addressing the structural decline in the traditional letters market by improving efficiency across our operations and adapting our network to accommodate the ever-increasing number of parcels being sent.

"We recognise, however, that there is much more to be done. Our commitment to executing our strategies is key. Our increased focus on the parcels market and our growing international businesses is helping to build a strong commercial future for the group."

[5plusbonusball]

And again, didn't we all expect them to make a profit the day after we got paid off due to the shares not making a profit!

[TrueBlueTerrier]

Royal Mail Holdings plc
Annual Report and Financial Statements
2011-12

http://www.royalmailgroup.com/sites/def ... t_2012.pdf" onclick="window.open(this.href);return false;

[britwrit]

Wow. What a surprise. The year after we dump our pension commitments on the taxpayer, we make a profit. Who could've seen it?

[End of the road]

Odd that ...........

The day they announce the return to profit we get £100 after the demise of the shares .

Ever had the feeling you've been had

[RedBagMan]

Just seen someone called David Stubbs ("Postal Expert") on BBC news - whilst telling us all we should have made more money he still talked b*ll*x

[protect us]

Pushing 3 rounds into one , removal of docket, one set of payment for door to doors regardless of how many , collections taken away, SA attendance built into duties, hardly any permanent ft staff , postage costs up , holidays due being lost in the computer ! Etc etc the list is endless ! Why wouldn't you make a profit !

[Pat Ostman]

So Dingo, is RM still valued at £0?

[Talell]

Royal Mail Holdings plc
Annual Report and Financial Statements
2011-12

http://www.royalmailgroup.com/sites/def ... t_2012.pdf" onclick="window.open(this.href);return false;

"At Royal Mail, learning is supported by the activities of our Learn Centres"

your? last I checked, they were set up and run by ULR's of the CWU, and funded by the relevant regional union learning funds

The legacy share scheme write-back of £101 million was recognised last year when it was confirmed that the scheme had no value

I don't think I need to add anything to that.

[Mark Higson] External appointments (current and former): Currently President of the World Class Manufacturing Association (WCMA)

explains ALOT to be honest.

The attendance report to various board meetings (pg68) is hilarious to be honest (noone cares about audit and risk, renumeration? 8/8 8/8 8/8 8/8 8/8)

The executive directors have 12 months left on contract, pg 78, wonder who will be renewed?

that's all I can discern from a quick skim of it, couple other juicy tidbits, but not worth mentioning

[britwrit]

It's been asked here before but why doesn't the "World Class Manufacturing Association" have a website? And what exactly is the WCMA when it's at home?

[CORTINA]

So ... Big increased R M profits announced of £211 million so share it around...

A new rate of time and a half on overtime needs to be a more realistic payment, to show some respect for job done and then staying out and going on with that extra effort.....

The extra bonuses and increased pay at the top of many companies today is not reflected in the pitance of money related to extra effort done in overtime rates at RM .... in 2012