RMCtv : Video : Simon 'I am hoping the video helps explain why a no strings pay rise is not possible - sorry' Thompson

[POSTMAN]

Simon Says

Morning Team - we are at a crossroads, the time to change is now......

“The last two years has shown us all how quickly customer needs can change. Our focus now is to work at pace with our people and our trade unions to reinvent this British icon for the next generations, so that we can give our customers what they want, grow our business sustainably and deliver long-term job security for our great team. We have no time to waste.”



So good morning. This morning, we are presenting our full year results for 2021 22 to the market. When I was thinking about what I would say to you this morning, I look back at what I said this time last year. And I remember saying at the time, we are not out of the woods yet. And I also remember being concerned that this message would not be clearly heard. And when we look back, the increase in demand for parcels during the pandemic gave us a lifeline.

Domestic parcel volumes are up 31% compared to pre pandemic levels, whilst letter volumes are down 18%. We've had to deal with larger parcel volumes than expected. And the bigger the challenge, the harder our team tried.

And I'm very grateful for everything that you've done. But and it's a big but the world is now normalizing. We are now at a crossroads. And the time to change is now COVID is largely behind us. And we have a lot of economic uncertainty ahead. Some of the exceptional volumes we've experienced are reducing.

And I'm sure every day you can see we no longer have the benefit of delivering test kits. Today, I'd like to talk about what went well, what didn't go so well.

And to look at what is ahead for us. Over the last 12 months, we've done some amazing things together. We dealt with the impact of COVID-19 we managed through a pandemic and some of the worst storms in decades. And without hesitation, we always acted quickly to step up our delivery of test kits for the country whenever it was required.

As a result of all of this in 2021 22 our revenue, that's the money, we make no profit reduced slightly down 1.6% Compared to last year to just over 8.5 billion pounds.

Through commercial pricing and cost saving initiatives, we managed to deliver increased profitability of 416 million pounds in the year. But the most important thing we need to do was to make sure we seize the opportunity to reinvent Royal Mail for the next generations whilst we have the chance.

Transforming is what will provide you or job security for the future. And not just today. Some of our transformation has gone very well. We've enjoyed record productivity and processing, our parcel automation has leaped up.

Our automated hubs are running on time, we have a new consumer app, which is growing users every week. We believe we've grown our revenue share of domestic parcels. Our trust score has enjoyed a positive step change.

We started delivering on Sundays, and we've expanded parcel collect, and these are all great achievements. But there's simply not enough.

We delivered over 1200 revisions in delivering and I'm disappointed to report that the net result of the 1000s That went well, were canceled out by the 200. That did not go well.

In reality, this means that even though our revision activity was an enormous effort, and for that I'm very grateful productivity in the year was down North Point 2% year on year. Due to this reality, we only delivered 59 million pounds of our expected 100 million pounds plus of benefits from the pathway to change agreement.

We know we need to be more efficient, so we can compete with the rest of the industry. So we need to make up this lost ground. Over the last three years, we've invested 900 million pounds in our future of which 441 million was invested in the last 12 months on things like electric vans, new PDAs to new parcel hubs, uniforms, automation, and improving our poorest delivery offices. Now is the time to unlock the potential of these investments.


Thanks to our new hubs and the progress we've made an automation we can compete on parcels quality and price. But we need to urgently change our ways of working in delivery to reflect the needs of our cars Customers and ensure we can respond more flexibly to the peaks and troughs in volumes.

Our working practices and delivery are still optimized for letters or not for parcels. We have a plan of change that we started discussing with the CW last year as part of the pathway to change agreement. We now want to discuss how these principles can be put into practice. We urgently need a roadmap of implementation.

As I have always said, We'd like a pay deal as soon as possible. But it needs to be about pay and the change to pay for it. We are operating in a very competitive parcels market and you are living in inflationary times. So we need to give you certainty. So we can put all of our energy into seizing the opportunity in front of us.

Usually at this time of year, we would give guidance to the markets on how much money we think we will make in the financial year or in the future years. The trading environment is currently too uncertain to give precise figures. However, given the huge economic uncertainty we face, the high inflation. We have today warned the markets that we are expecting revenue and profit to reduce next year.

Clearly, any industrial action would worsen disposition. Having delivered our transformation and completed our PE deal, we will be able to compete and win in the parcels market whilst delivering a great service or letters. We can win I am certain of that, but only if we change unchanged now

[POSTMAN]

Market slide presentation

Results announcement

[POSTMAN]

The time to change is now – Royal Mail has issued its Full Year results for 2021/22

Royal Mail must unlock the potential of the investments it has made in order to bring the change it needs, as the business announces its Full Year results for 2021/22.

With the coronavirus pandemic largely behind us there is a lot of economic uncertainty ahead.
We increased profitability but our revenue reduced slightly. The most important thing we needed to do, was to make sure we seized the opportunity to re-invent Royal Mail for the next generations, while we had the chance.

CEO Simon Thompson said: ‘Transforming is what will provide you all job security for the future – and not just today.’

Some of our transformation has gone well:

· We enjoyed record productivity in processing
· Our parcel automation leapt up
· Automated hubs are running on time
· A new consumer App is growing users every week
· We’ve grown our revenue share of domestic parcels
· Our Trust Score has enjoyed a positive step change
· We started delivering on Sundays
· Parcel Collect has expanded.

‘These are great achievements, but they are simply not enough.’

We delivered 1,200 revisions
Delivery – but the 1,000 that went well were cancelled out by the 200 that didn’t and productivity in the year was down 0.2% year-on-year.
We only delivered £59 million of our expected £100 million-plus of benefits from the Pathway to Change Agreement.

The time to change is now

Over the last three years, we’ve invested around £900 million in our future, of which £441 million was invested in the last 12 months on things like electric vans, two new parcel hubs, uniforms, automation and improving our poorest delivery offices.

‘Now is the time to unlock those investments,’ says Simon. ‘We need to urgently change our ways of working in delivery to reflect the needs of our consumers and ensure we can respond more flexibly to the peaks and troughs in volumes.

‘We have a plan of change that we started discussing with CWU last year, as part of the Pathway to Change Agreement. We now want to discuss how these principles can be put into practice. We urgently need a roadmap of implementation.’

[wrongturn]

!

[POSTPERSON50]

"here put on this workplace coach hi vis and look out to the sea"
- its just shameless propaganda time after time.

"we no longer have the benefit of delivering test kits"
- you didnt deliver them Simon. you got the bumper £ deal and many of us carried the extra burden.

"reinvent Royal mail for the NEXT generation"
- what about the ones here and now ? the ones who broke their backs delivering a pandemic service. what benefit is it to them what happens for the next generation ?

"these are great achievements but theyre simply not enough"
- whats that to do with us ? weve delivered what youve asked

"1200 revisions. 1000 went well cancelled out by 200 that didnt"
- whos fault is that again ! imagine the amount of resources and wasted time that went into that just for it to have failed when we all could have said it would

shares down 12%. worrying times

Currently;

Royal Mail PLC
LON: RMG

298.70 GBX -225.30 (-43.08%)year to date

19 May, 11:08 BST • Disclaimer

[cobrakai]

They bought £200m of shares not long ago to shore up the share price. Where did that cash come from. Scary

[britwrit]

"We've taken on more debt, we need to invest more in the company, and - with a recession looming - we're going to spend hundreds of millions on a dividend payment."

Edit: We have a legal responsibilty to stockholders to present an accurate picture of the company. I get that. But these doom-and-gloom statements year after year constantly present us as on the verge of ruin, if not speeding downhill already. Would it hurt to be a little more upbeat?

[POSTPERSON50]

"We delivered over 1200 revisions in delivery and I'm disappointed to report that the net result of the 1000s that went well, were canceled out by the 200 that did not go well"

Thousands that went well??
He means that the thousand revision projects which were marked as 'completed' apparently went well.

[matrix123]

grateful my arse.

greed, delusion and bulls**t on repeat out this guys mouth. It's ok though we were used like drones for 2 years while the richer got richer. t***er

[ted_e_bear]

Well I can't hide my disappointment......no Eric Morecambe inspired quote

[roadrunner bill]

Same old nonsense, royal mail need to change.... horse s h I t...

Omg... I've heard that bull.. for the last 20 years..we need change next year, the year after and for ever..a pay deal for Tomorrow its garbage ......its greed greed and more greed...

All they want is to flog you to you drop dead, with their bull, we need change nonesense..

Because they want more profit, profit .... year on year...., utter greed at it's best..

[derricksmyth]

They bought £200m of shares not long ago to shore up the share price. Where did that cash come from. Scary

It didn't do much Good!!!

[Clappedoutpostie]

What an insult, no mention of the hard work we have put in with Xmas volumes everyday for 2 years. Shameful.

[fb1969]

Can't see how he can use the word "we" when he has done f**k all other than trash the company and the staff.

Shares plummeted yet again today, now not much above half the price they were after he lied to the markets about revisions being done.

Same old same old bullshit, total contempt for a workforce that has generated and delivered these profits while he has hidden in his bathroom slagging us off.

Disgrace as a human being.

[POSTMAN]

Well I can't hide my disappointment......no Eric Morecambe inspired quote