LTB 747/14 - BIS Select Committee Wednesday 26th November
No. 747/14
Ref: GS11.0
Date:19th November 2014
TO: ALL BRANCHES
Dear Colleague
BIS Select Committee Wednesday 26th November
Branches will be aware that the CWU will be giving evidence to the BIS select committee on Wednesday 26th November at 11.00am.
The venue for the BIS Select Committee will be advised to CWU on Thursday the 20th of November. Once we are in receipt of venue details a further LTB will be sent giving information of access to both the event and if it is televised, streaming details.
The union has organised a meeting with MPS to be held in Committee Room 17 at the House of Commons, London, SW1A 0AA at 14:00-16:00 on November 26th.
Branches are encouraged to contact their local MP to ensure they attend the meeting.
Material supporting the union's case will be provided to parliamentarians by Friday November 21st.
Any further enquiries regarding this LTB should be addressed to the General Secretary's Office at gsoffice@cwu.org quoting the reference GS11.0/LTB 747/14.
Yours sincerely
W HAYES D WARD
General Secretary Deputy General Secretary (Postal)
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BIS Select Committee Wednesday 26th November
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TrueBlueTerrier
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BIS Select Committee Wednesday 26th November
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TrueBlueTerrier
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Re: BIS Select Committee Wednesday 26th November
Letter to Branches
No. 755/2014
Ref:
Date: 20 November 2014
TO ALL BRANCHES WITH POSTAL MEMBERS
Dear Colleague
ROYAL MAIL GROUP – HALF YEARLY FINANCIAL RESULTS
Please find attached to this LTB a CWU Research Paper highlighting the key points contained in the company’s financial results, issued yesterday.
It can be seen from the results that the company continues to make a profit. However, the Royal Mail Group’s key message accompanying these results was that the growing and unchecked impact of direct delivery competition in letters and parcels threatens the future of the USO.
As Branches will be aware, the Union will be making the case at next week’s BIS Select Committee hearing for Regulatory and political intervention and action on all the issues associated with unfair competition.
Any enquiries on the above LTB should be addressed to the DGS (P).
Yours sincerely
Dave Ward
Deputy General Secretary (P)
ROYAL MAIL HALF-YEAR RESULTS 2014/15
Overview
Royal Mail CEO Moya Greene said she was pleased with the overall performance in the first half of the 2014/15 financial year and that it was in line with the company’s expectations. She highlighted two percent revenue growth, together with tight cost control that is expected to continue into 2015/16; but also emphasised the full-year outcome was dependent on performance over the Christmas period.
The headline figure of a 21% decline in reported operating profits before transformation costs has caused concern, but when compared to the previous year’s results on an underlying basis shows a small improvement. Royal Mail used the half yearly results to reiterate concerns about the impact of unfettered direct delivery competition on the financial sustainability of the universal service. Parcel revenues were down 1% despite a 2% increase in volumes. Royal Mail warned that Amazon’s own parcel delivery network will reduce the annual growth rate in the UK addressable parcels market to 1%-2% for the next two years.
Royal Mail Group
Key figures for Royal Mail Group for the first half of 2014/15 compared to the same period in 2013/14 are:
Revenue grew 2%, in line with expectations, to £4,525m.
Operating profit before transformation costs dropped 21%, down £74m to £279m. However on an underlying basis (i.e. stripping out items that may distort the company’s trading performance such as different VAT credits, an increased pension charge and the fact there was one less working day in the first half of this year) Royal Mail says this actually represents an increase of £13m compared to the same period a year ago.
Pre-tax profits dropped 6% (by £15m) to £218m excluding specific items.
EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) before transformation costs was down 14% to £416m.
Earnings per share excluding specific items were 16.3p, down from 16.8p.
UK Parcels, International and Letters (UKPIL)
Total UKPIL revenue was flat at £3,703m, as a 1% increase in total letter revenue off-set a 1% decline in parcel revenue. Tight cost control meant that UKPIL operating costs before transformation costs, which include the pay rise for frontline employees, were flat at £3,484m. Reported UKPIL operating profit before transformation costs was down 26% to £219m compared to the same period the previous year.
UK Letters
Total letter revenue was up 1% at £2,242m primarily due to election mailings but also due to the impact of price increases.
Addressed letter volumes declined by 3% to 6,466 items - better than the expected range of 4-6% annual decline due to improved UK economic conditions.
Unaddressed letter volumes were up 4% to 1,560 items.
Marketing mail revenue, which now accounts for around one quarter of letters revenue, grew by 5% to £571m as a result of improved UK economic conditions and the impact of MarketReach.
UK Parcels
UKPIL parcel volumes were up 2% but revenue was down 1% to £1,461m. Royal Mail said the revenue drop was down to the change in the mix of parcels they carry and the highly competitive parcels market.
Royal Mail estimates the total number of parcels deliveries in the market will increase by approximately 4% p.a. in the medium term. However they believe Amazon’s own parcel delivery network will reduce the annual rate of growth in their addressable market (i.e. UK domestic parcel deliveries independent delivery companies compete for) to 1-2% for approximately 2 years.
Royal Mail exceeded their internal quality of service target for composite parcels in the core network - recording a measure of 95.4% - and said this reflected the benefits of the operational focus on first-time delivery.
Parcelforce Worldwide saw good volume growth of 9%, however revenues from this part of the business were impacted by pressure on pricing in a highly competitive market.
General Logistics Systems (GLS)
GLS, Royal Mail’s European parcel business, demonstrated a strong performance, with better than expected volumes in domestic and export parcels. GLS revenues increased 7% to EUR 1,008m, driven by a 7% increase in parcel volumes. Total operating costs for GLS were also up 7%, but operating profit increased 11% to EUR 69m.
Other
The “other” part of Royal Mail Group’s business recorded a £1m increase in revenue to £9m, but a £2m drop in operating profit after transformation costs, to £4m.
Shares
The Board announced an interim dividend of 6.7p per share for the first half of the year, amounting to £67m that will be paid on 14 January 2015 to shareholders on the register on 28 November 2014. Eligible full-time employees with free employee shares will each receive their maiden interim dividend of over £48 in January 2015, in addition to the final dividend of over £96 they received on 31 July 2014.
Further information to note
The half-yearly results state that the management reorganisation programme is expected to deliver cost savings of around £70m per annum from 2015/16 – more than the £50m per annum originally anticipated – with at least £25m of cost benefits expected in the second half of this financial year.
Royal Mail achieved productivity improvements of 2.1% - up from 1.7% previously – and therefore within the target range of 2-3% annum. Royal Mail says this productivity improvement partially offset a 2% increase in total people costs, which included the 3% pay award for CWU represented grades.
No. 755/2014
Ref:
Date: 20 November 2014
TO ALL BRANCHES WITH POSTAL MEMBERS
Dear Colleague
ROYAL MAIL GROUP – HALF YEARLY FINANCIAL RESULTS
Please find attached to this LTB a CWU Research Paper highlighting the key points contained in the company’s financial results, issued yesterday.
It can be seen from the results that the company continues to make a profit. However, the Royal Mail Group’s key message accompanying these results was that the growing and unchecked impact of direct delivery competition in letters and parcels threatens the future of the USO.
As Branches will be aware, the Union will be making the case at next week’s BIS Select Committee hearing for Regulatory and political intervention and action on all the issues associated with unfair competition.
Any enquiries on the above LTB should be addressed to the DGS (P).
Yours sincerely
Dave Ward
Deputy General Secretary (P)
ROYAL MAIL HALF-YEAR RESULTS 2014/15
Overview
Royal Mail CEO Moya Greene said she was pleased with the overall performance in the first half of the 2014/15 financial year and that it was in line with the company’s expectations. She highlighted two percent revenue growth, together with tight cost control that is expected to continue into 2015/16; but also emphasised the full-year outcome was dependent on performance over the Christmas period.
The headline figure of a 21% decline in reported operating profits before transformation costs has caused concern, but when compared to the previous year’s results on an underlying basis shows a small improvement. Royal Mail used the half yearly results to reiterate concerns about the impact of unfettered direct delivery competition on the financial sustainability of the universal service. Parcel revenues were down 1% despite a 2% increase in volumes. Royal Mail warned that Amazon’s own parcel delivery network will reduce the annual growth rate in the UK addressable parcels market to 1%-2% for the next two years.
Royal Mail Group
Key figures for Royal Mail Group for the first half of 2014/15 compared to the same period in 2013/14 are:
Revenue grew 2%, in line with expectations, to £4,525m.
Operating profit before transformation costs dropped 21%, down £74m to £279m. However on an underlying basis (i.e. stripping out items that may distort the company’s trading performance such as different VAT credits, an increased pension charge and the fact there was one less working day in the first half of this year) Royal Mail says this actually represents an increase of £13m compared to the same period a year ago.
Pre-tax profits dropped 6% (by £15m) to £218m excluding specific items.
EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) before transformation costs was down 14% to £416m.
Earnings per share excluding specific items were 16.3p, down from 16.8p.
UK Parcels, International and Letters (UKPIL)
Total UKPIL revenue was flat at £3,703m, as a 1% increase in total letter revenue off-set a 1% decline in parcel revenue. Tight cost control meant that UKPIL operating costs before transformation costs, which include the pay rise for frontline employees, were flat at £3,484m. Reported UKPIL operating profit before transformation costs was down 26% to £219m compared to the same period the previous year.
UK Letters
Total letter revenue was up 1% at £2,242m primarily due to election mailings but also due to the impact of price increases.
Addressed letter volumes declined by 3% to 6,466 items - better than the expected range of 4-6% annual decline due to improved UK economic conditions.
Unaddressed letter volumes were up 4% to 1,560 items.
Marketing mail revenue, which now accounts for around one quarter of letters revenue, grew by 5% to £571m as a result of improved UK economic conditions and the impact of MarketReach.
UK Parcels
UKPIL parcel volumes were up 2% but revenue was down 1% to £1,461m. Royal Mail said the revenue drop was down to the change in the mix of parcels they carry and the highly competitive parcels market.
Royal Mail estimates the total number of parcels deliveries in the market will increase by approximately 4% p.a. in the medium term. However they believe Amazon’s own parcel delivery network will reduce the annual rate of growth in their addressable market (i.e. UK domestic parcel deliveries independent delivery companies compete for) to 1-2% for approximately 2 years.
Royal Mail exceeded their internal quality of service target for composite parcels in the core network - recording a measure of 95.4% - and said this reflected the benefits of the operational focus on first-time delivery.
Parcelforce Worldwide saw good volume growth of 9%, however revenues from this part of the business were impacted by pressure on pricing in a highly competitive market.
General Logistics Systems (GLS)
GLS, Royal Mail’s European parcel business, demonstrated a strong performance, with better than expected volumes in domestic and export parcels. GLS revenues increased 7% to EUR 1,008m, driven by a 7% increase in parcel volumes. Total operating costs for GLS were also up 7%, but operating profit increased 11% to EUR 69m.
Other
The “other” part of Royal Mail Group’s business recorded a £1m increase in revenue to £9m, but a £2m drop in operating profit after transformation costs, to £4m.
Shares
The Board announced an interim dividend of 6.7p per share for the first half of the year, amounting to £67m that will be paid on 14 January 2015 to shareholders on the register on 28 November 2014. Eligible full-time employees with free employee shares will each receive their maiden interim dividend of over £48 in January 2015, in addition to the final dividend of over £96 they received on 31 July 2014.
Further information to note
The half-yearly results state that the management reorganisation programme is expected to deliver cost savings of around £70m per annum from 2015/16 – more than the £50m per annum originally anticipated – with at least £25m of cost benefits expected in the second half of this financial year.
Royal Mail achieved productivity improvements of 2.1% - up from 1.7% previously – and therefore within the target range of 2-3% annum. Royal Mail says this productivity improvement partially offset a 2% increase in total people costs, which included the 3% pay award for CWU represented grades.
All post by me in Green are Admin Posts.
Any post in any other colour is my own responsibility.
If you like a news story I posted please click the link to show support Any news stories you can't post - PM me with a link
My sharing of news articles should not be interpreted as an endorsement or condemnation of any particular viewpoint or the issues presented. I share them solely for informational purposes.
Any post in any other colour is my own responsibility.
If you like a news story I posted please click the link to show support Any news stories you can't post - PM me with a link
My sharing of news articles should not be interpreted as an endorsement or condemnation of any particular viewpoint or the issues presented. I share them solely for informational purposes.
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TrueBlueTerrier
- FORUM ADMINISTRATOR
- Posts: 72700
- Joined: 30 Dec 2006, 10:29
- Gender: Male
- Location: On my couch
Re: BIS Select Committee Wednesday 26th November
LTB 757/14 - BIS Select Committee Wednesday 26th November 09:30 - 12:00
No. 757/14
Ref: GS11.0
Date:20th November 2014
TO: ALL BRANCHES
Dear Colleague
BIS Select Committee Wednesday 26th November 09:30 - 12:00
We have today received official confirmation of the venue of the BIS Select Committee:-
WILSON ROOM, PORTCULLIS HOUSE
The CWU will be giving evidence at 11:00.
The full session of the BIS will be televised please see http://www.parliamentlive.tv/Main/Playe ... ngId=16617" onclick="window.open(this.href);return false;
As the attached emailed press release points out, members of the public are permitted to sit in on the session.
Entrance is possible via Portcullis House on the Thames Embankment. The CWU will monitor the evidence for all of the sitting.
At 12:30 to 14:00 the CWU will hold a short reception to update MPS and Branches who are in attendance. Please note that timings of the reception have changed from those previously listed in LTB 747/14. Also due to the room size space is limited.
The reception will be held in Committee Room 17, House of Commons. The entrance is via St Stephens Gate Entrance, the normal route into the House of Commons.
Branches are encouraged to meet with their MPS on the day of the Select Committee.
A communication to MPS was sent out today Thursday November 20th, a copy of which will also be sent to Branches, together with guidelines on lobbying MPs
Any further enquiries regarding this LTB should be addressed to the General Secretary's Office at gsoffice@cwu.org quoting the reference GS11.0/LTB 757 /14.
Yours sincerely
W HAYES D WARD
General Secretary Deputy General Secretary (Postal)
NB. Attempts to secure a room for the reception in Portcullis House have not been successful the room obtained in the House of Commons is subject to strict time regulations.
No. 757/14
Ref: GS11.0
Date:20th November 2014
TO: ALL BRANCHES
Dear Colleague
BIS Select Committee Wednesday 26th November 09:30 - 12:00
We have today received official confirmation of the venue of the BIS Select Committee:-
WILSON ROOM, PORTCULLIS HOUSE
The CWU will be giving evidence at 11:00.
The full session of the BIS will be televised please see http://www.parliamentlive.tv/Main/Playe ... ngId=16617" onclick="window.open(this.href);return false;
As the attached emailed press release points out, members of the public are permitted to sit in on the session.
Entrance is possible via Portcullis House on the Thames Embankment. The CWU will monitor the evidence for all of the sitting.
At 12:30 to 14:00 the CWU will hold a short reception to update MPS and Branches who are in attendance. Please note that timings of the reception have changed from those previously listed in LTB 747/14. Also due to the room size space is limited.
The reception will be held in Committee Room 17, House of Commons. The entrance is via St Stephens Gate Entrance, the normal route into the House of Commons.
Branches are encouraged to meet with their MPS on the day of the Select Committee.
A communication to MPS was sent out today Thursday November 20th, a copy of which will also be sent to Branches, together with guidelines on lobbying MPs
Any further enquiries regarding this LTB should be addressed to the General Secretary's Office at gsoffice@cwu.org quoting the reference GS11.0/LTB 757 /14.
Yours sincerely
W HAYES D WARD
General Secretary Deputy General Secretary (Postal)
NB. Attempts to secure a room for the reception in Portcullis House have not been successful the room obtained in the House of Commons is subject to strict time regulations.
All post by me in Green are Admin Posts.
Any post in any other colour is my own responsibility.
If you like a news story I posted please click the link to show support Any news stories you can't post - PM me with a link
My sharing of news articles should not be interpreted as an endorsement or condemnation of any particular viewpoint or the issues presented. I share them solely for informational purposes.
Any post in any other colour is my own responsibility.
If you like a news story I posted please click the link to show support Any news stories you can't post - PM me with a link
My sharing of news articles should not be interpreted as an endorsement or condemnation of any particular viewpoint or the issues presented. I share them solely for informational purposes.