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letters down around 8% why profits halved?

07 Feb 2020, 22:38

What’s going on? Why have Royal Mail suddenly making some much less profit when the fall in letters is only 8%? Can someone explain this to me in fairly simple terms. Is it because of pay rises etc

letters down around 8% why profits halved?

07 Feb 2020, 22:59

Profit is what you make above the cost of running a business.

letters down around 8% why profits halved?

07 Feb 2020, 23:54

RM has been investing in foreign courier companies some of which were not worth buying then the losses from this would write off profits and save on RMs corporation tax. Moya Greene did this as well when she was in charge. A lot of companies fiddle the figures for various reasons. Recently John Lewis said they had made no profit which is highly unlikely. Some companies do things such as claiming they don't own the name of their company and have to pay another entity to use the name. There are all kinds of dodgy practices with these characters.

letters down around 8% why profits halved?

08 Feb 2020, 07:01

RM have a long and proud history of cooking the books when it comes to profit figures... many of us remember the sudden drop in annual profits for the year that our ''colleague shares'' were due to receive a payout, only for the profits to miraculously return to normal levels the following year.

RM are doing their best to make the profits and businesses prospects look as bad as possible at the moment to justify the changes they want to make in the face of any opposition from the CWU and OFCOM.

letters down around 8% why profits halved?

08 Feb 2020, 12:15

wacko74 wrote:RM have a long and proud history of cooking the books when it comes to profit figures... many of us remember the sudden drop in annual profits for the year that our ''colleague shares'' were due to receive a payout, only for the profits to miraculously return to normal levels the following year.

RM are doing their best to make the profits and businesses prospects look as bad as possible at the moment to justify the changes they want to make in the face of any opposition from the CWU and OFCOM.

Thanks that’s sort of what I guessed, what with Rico buying thousands of shares.

letters down around 8% why profits halved?

08 Feb 2020, 20:03

wacko74 wrote:RM have a long and proud history of cooking the books when it comes to profit figures... many of us remember the sudden drop in annual profits for the year that our ''colleague shares'' were due to receive a payout, only for the profits to miraculously return to normal levels the following year.

RM are doing their best to make the profits and businesses prospects look as bad as possible at the moment to justify the changes they want to make in the face of any opposition from the CWU and OFCOM.

Yeah, think they're playing long game here. Same with the phantom pay offer.
All the public are gonna hear is RM are struggling, shares through the floor, they've been offered pay rise but still want to strike. How do we explain to public without looking greedy, its not like they'll understand "the four pillars" not sure I do sometimes.
Union will be made the bad guys. And I get the impression they will be pressured into some crappy deal.
Terry thinks Rico will be shown the door. Maybe, just maybe this is all part of RMs plans.
Or maybe I'm giving them too much credit.

letters down around 8% why profits halved?

08 Feb 2020, 20:11

Newbie001 wrote:
wacko74 wrote:RM have a long and proud history of cooking the books when it comes to profit figures... many of us remember the sudden drop in annual profits for the year that our ''colleague shares'' were due to receive a payout, only for the profits to miraculously return to normal levels the following year.

RM are doing their best to make the profits and businesses prospects look as bad as possible at the moment to justify the changes they want to make in the face of any opposition from the CWU and OFCOM.

Yeah, think they're playing long game here. Same with the phantom pay offer.
All the public are gonna hear is RM are struggling, shares through the floor, they've been offered pay rise but still want to strike. How do we explain to public without looking greedy, its not like they'll understand "the four pillars" not sure I do sometimes.
Union will be made the bad guys. And I get the impression they will be pressured into some crappy deal.
Terry thinks Rico will be shown the door. Maybe, just maybe this is all part of RMs plans.
Or maybe I'm giving them too much credit.

It is like any other business it was sold off on the cheep for profit I blame those who chose to do this in the elections of the past and in the last election the truth of which will not be realised till the end of this year!

letters down around 8% why profits halved?

08 Feb 2020, 22:31

Hitcher wrote:Profit is what you make above the cost of running a business.

I get that mate so are you implying the the costs of running Royal Mail have in the last year or two nearly doubled? What are you getting at?

Reading this has got me more confused tbh
https://markets.ft.com/data/equities/te ... ?s=RMG:LSE

Royal Mail PLC had net income fall -32.43% from 259.00m to 175.00m despite a 4.02% increase in revenues from 10.17bn to 10.58bn. An increase in the selling, general and administrative costs as a percentage of sales from 23.16% to 24.63% was a component in the falling net income despite rising revenues.

letters down around 8% why profits halved?

08 Feb 2020, 22:34

Where are the extra costs coming from in the last year? Revenue is up so the costs must have risen dramatically, wondering what these are? Or perhaps as has been said they just fiddling the figures for political moves

letters down around 8% why profits halved?

09 Feb 2020, 08:22

The costs probably come from implementing the new ''parcels strategy'' buying or leasing the land, property and equipment for the new parcel hubs.

Also further to my theory that RM are doing everything possible to make income and profits look as poor as possible at the moment, has anyone else noticed a marked drop off in the amounts of D2D's we've had these last 2-3 months? In that time we've only been getting 1 lot a week at the most rather than the usual 3+ lots.

My suspicious mind thinks RM are currently turning down D2D contracts from customers as part of their plan to make income and profits look poor.

letters down around 8% why profits halved?

09 Feb 2020, 09:25

According to the CORPORATE RESPONSIBILITY REPORT 2017– 18
ROYAL MAIL & PARCELFORCE (UK)
AROUND 14.4 BILLION LETTERS HANDLED BY ROYAL MAIL
1.2 BILLION PARCELS HANDLED BY ROYAL MAIL

So based on those figures, & taking account of the % reduction since that report, are we currently a letters-led international company that also delivers parcels.
Edit;
Corporate Responsibility Report 2018–19

13bn LETTERS

1.3bn UKPIL PARCELS

GLS PARCELS 634m

Defending letters – Letters are important to our customers. They account for 51 per cent of our UK revenue. We work with customers and supply chain partners to add value to mail, promote its effectiveness, and increase its efficiency.

letters down around 8% why profits halved?

09 Feb 2020, 14:17

postmanzach wrote:Where are the extra costs coming from in the last year? Revenue is up so the costs must have risen dramatically, wondering what these are? Or perhaps as has been said they just fiddling the figures for political moves


Possibly too many lazy office staff (including managers after 9am) that have their longest loop to the coffee machine and back.

letters down around 8% why profits halved?

09 Feb 2020, 21:17

Lies, damned lies and statistics?? Royal Mail have a knack of manipulating the figures especially when they really need to transform the business and make killer profits

letters down around 8% why profits halved?

10 Feb 2020, 11:56

wacko74 wrote:
My suspicious mind thinks RM are currently turning down D2D contracts from customers as part of their plan to make income and profits look poor.

I think RM are selling the PDA outdoor actual data to Huawei who will use it to harvest my organs while I am still alive.
Sorry does that sound far-fetched?

letters down around 8% why profits halved?

10 Feb 2020, 20:16

The job us f****d and we all know it now,a shane but its over .....

letters down around 8% why profits halved?

11 Feb 2020, 16:23

Yeah letters according to RM have been falling by 5-8% for the last 15 years. There should be very little mail left but there is still lots of letters?

letters down around 8% why profits halved?

14 Feb 2020, 14:00

Must be coming up to the end of the Finacial Year? RM always start pleading poverty when it's time to start negotiating for a pay deal! :cuppa

letters down around 8% why profits halved?

18 Feb 2020, 09:10

gand wrote:Yeah letters according to RM have been falling by 5-8% for the last 15 years. There should be very little mail left but there is still lots of letters?


Exactly! So, in the olden days was there the equivalent of a box or two of sequenced and two or three boxes of IPS every day on a duty?

All I keep hearing is 'letters are down' yet I'm going up most people's paths most days with something. I get that people email/text or whatever rather than pen a letter, but I bet in those olden days there weren't as many catalogues, promotional letters and what have you.

It's all smoke and mirrors surely. If letter volumes are down why are we sorting and tying up so many every day? You never hear a long serving postie saying how hard the job was in the olden days because of all those letters we don't have today. On the contrary, it's generally considered that the job used to be a breeze.

Keep telling me letters are down. I'll keep wondering why there's so many in my bags, as those things wrapped in rubber bands aren't all packets. Those heavy bundles are full of...letters, or the modern equivalent thereof.

Something stinks.

letters down around 8% why profits halved?

18 Feb 2020, 09:22

crimson king wrote:Keep telling me letters are down. I'll keep wondering why there's so many in my bags, as those things wrapped in rubber bands aren't all packets. Those heavy bundles are full of...letters, or the modern equivalent thereof.

Technically a sizeable chunk of what MCs send out to DOs as packets are actually large-letters.

letters down around 8% why profits halved?

18 Feb 2020, 10:24

crimson king wrote:
gand wrote:Keep telling me letters are down. I'll keep wondering why there's so many in my bags, as those things wrapped in rubber bands aren't all packets. Those heavy bundles are full of...letters, or the modern equivalent thereof.


Your choice to stick with the old "letters aren't down" call if you like, but it's not reality. Notice how many MCs and now MPU's have closed over the last decade or so?
Apart from which, other than junk mail who sends letter these days? Even Christmas cards are noticeably fewer year on year.

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