Royal Mail profits fall as mail volumes decline

[TrueBlueTerrier]

http://www.bbc.co.uk/news/business-13765645" onclick="window.open(this.href);return false;

Royal Mail has reported sharply lower annual profits, due in part to falling mail volumes.

Operating profit, including the costs of modernisation changes, was £39m in 2010, down from £180m in 2009, the group said.

It blamed falling revenues after the number of letters and parcels carried last year fell by 4%.

Royal Mail is hoping that job cuts and mail centre closures will help it to reduce its costs.

Royal Mail is currently in the midst of a modernisation programme which it says is one of the biggest of its kind undertaken in the UK.

Around 7,000 staff currently leave the business each year and it expects the number of mail centres to halve over the next five years.

The government is proceeding with plans to sell or privatise Royal Mail. The Postal Services Act received royal assent this week.

The change in regulation will allow the government to take on the pension burden and for the potental sale or privatisation of the business.

[fishtank]

These figures include the investment being made in modernisation; excluding this investment group-wide profit stood at £246m up from £180m the previous year..

[DGP1]

These figures include the investment being made in modernisation; excluding this investment group-wide profit stood at £246m up from £180m the previous year..

Don't let the facts get in the way of a good story

[happyhippo]

Yawn i heard it all before. Still they always find money for management bonus's and always seem to find money to pay for overtime when i cant complete my lapsing on time. Somehow i think they are trying to justify the colleague share scam.

[jlu]

just heard on news our profits are down but moya got £142,000 BONUS how about that then.

[ziko]

Nice to Know your company values YOU..!

[robmacca]

Clearly Royal Mail are cooking the books as written on my blog at the weekend. Mail volumes were only down 4%, yet headcount is down as RM slash full time jobs. Just look around your office and count how many part timers you now have!

RM have included the cost of it's moderisation programme into these figures so as to make the results look worse. Their purpose is to brainwash workers into doing whatever RM desires. Taking on MORE work for less money (in real terms), working longer for an inferior pension while those at the top line their own pockets with nice fat pay cheques and bonuses with a gold plated pension. Time to fight back

[BELIAL]

Spot the pattern . RM makes massive loss ; new CEO appointed -RM makes massive profit _new CEO gets huge bonus. CEO leaves ,RM makes massive loss .... Not that good at their jobs are they?