Royal Mail losing 1m a day as pandemic postal boom subsides

[TrueBlueTerrier]

https://www.cityam.com/royal-mail-losin ... -subsides/

Royal Mail Group chiefs said its flagship postal service was haemorrhaging £1m a day today as revenues across the group slumped 5.1 per cent in the first quarter of the year as the pandemic postal boom subsides.

Revenues at the flagship postal arm of the group plunged £92m to £1.88bn in the three months to June, which bosses said reflected a slowdown in retail trends and the delivery of covid test kits that buoyed performance through the pandemic, as well a longer term structural decline in letters.


Revenues across the group, including its Dutch logistics division GLS, fell to £2.99bn, down 5.1 per cent on last year but 14.1 per cent ahead of pre-pandemic levels.

Ahead of its AGM today, chiefs warned £100m of benefits that had been identified in its long term transformation plan for the postal division were now in jeopardy.

“The pandemic boom in parcel volumes bolstered by the delivery of test kits and parcels is over,” said Keith Williams, chair of Royal Mail Group.

“Royal Mail is currently losing one million pounds per day and the efficiency improvements which are needed for long term success have stalled.”

Bosses said the group had become increasingly reliant on GLS for returns – which saw a 7.5 per cent jump in revenues to £1.12bn – and they were now mulling a breakup of the two companies if the outlook fails to improve at Royal Mail.


“In the event that significant operational change within Royal Mail in the UK is not achieved, the Board will consider all options to protect the value and prospects of the Group, including separation of the two companies,” the firm said.

The update comes ahead of the group’s annual general meeting today, where shareholders will quiz bosses on the performance of the firm.

It comes as Royal Mail faces unrest from workers over pay and the looming threat of industrial action. Royal Mail avoided a three day strike from workers later this week after trade union Unite said on Monday that a ballot of workers showed a majority in favour of returning to negotiations.

“Unite’s members today have accepted the senior management’s return to the negotiating table to improve upon the jobs already put back into the crucial delivery and collections services,” Unite official Mike Eatwell said in a statement.

[hans solo]

So I take it they are all handing their bonuses back
Naw I didn’t think so lying bastards

[blacov]

We have heard similar horror stories and it turned out we have made a record profits after all. I wonder how much time has Simon left.

[Acca Dacca]

There is a difference between losing money and not making as much as before due to special contracts and unique circumstances

Do they think we are idiots?

[matthew68]

I wander how much it costs to run all these vans they now have, we have several single van walks being delivered by transit van, these could easily be shared but instead of that they have given us 15 minutes extra summer lapsing!

[Wolf91]

21/22 £768M operating profit.

[iHateD2Ds]

Aload of bollixs
Manipulation of figures to scare workers fearing losing their jobs.
We heard it all before.

[derricksmyth]

Yet they are increasing the dividend yield, throwing even more money at the shareholders, you couldn't write this stuff. I want to strike now , not Sept. Please no more pussyfooting around!!

[SpacePhoenix]

Packets have dropped off, don't know if it's just the normal summer drop off or if people are now cutting back on their spending as a result of the cost of living crisis

[cobrakai]

We were rocket fuelled by test kits. Parcels levelled off. Then they spaffed all that extra money on shareholders.

Get rid of the board and pay us what we are worth.

[daveyeff]

its ALWAYS £ 1 million a day when they spout their 'losses' shite. it was a million pound a day when crozier and leighton were here in 2007. (do these figures not rise with inflation ) it was a million pound a day at P&O ferries before they sacked all the workers!! it must be an agreed figure they all use to lie their way out of a dispute. well they are not lying their way out of this. F**k em.

[fb1969]

Not a loss at all, just making less than they did last year when they were raking it in off the back of covid.

The CEO cannot stop himself from the endless stream of lies. The only time he stops the lies is when he starts trolling the workforce. Its getting a bit tedious now Mr Thompson, why not admit you are out of your depth and go before you drown in your lies.

[Ad_bee]

There is a difference between losing money and not making as much as before due to special contracts and unique circumstances

Do they think we are idiots?

Yes and yes.

They must have forgotten that parcels are like Christmas-everyday.

[30+YEARMAN]

Here we go again, perhaps they should ask for the £400 million back from the shareholders.

[enskied]

Packets have dropped off, don't know if it's just the normal summer drop off or if people are now cutting back on their spending as a result of the cost of living crisis

Not here, packets still through the roof. Same addresses every day. No sign of people cutting back yet