Parcelforce grows, but Royal Mail's profit plunges 71.7%

[TrueBlueTerrier]

http://www.roadtransport.com/Articles/2 ... lunges.htm" onclick="window.open(this.href);return false;

Parcelforce has posted a 14% rise in operating profit to £8m for the six months ended 26 September. Turnover increased by 3% to £197m from £191m in the first half of 2009.

"Despite difficult trading conditions in its highly competitive and unregulated market, Parcelforce achieved growth," comments Donald Brydon, Royal Mail Group's chairman.

However, the firm's core mail and Post Office divisions experienced falls in both profits and sales, contributing to a 71.7% drop in group operating profit to £52m from £184m, and a dip in revenue to £4.4bn from £4.57bn.

During the period, the number of employees fell by 2,800, the majority of whom were from the mail business. However, the company says further restructuring is on the way.

Moya Greene, Royal Mail CEO, says: "We are implementing a package of measures to raise cash, including reducing headcount, tightening spend with suppliers and raising proceeds from asset sales. This action must be taken to safeguard the financial stability of Royal Mail."

Recent investments at the company include £2.6m pumped into increasing flexible delivery times and Parcelforce launching a palletised overseas service.