Royal Mail expected to announce profits of 'up to £400m'

[Cut Off King]

http://www.express.co.uk/news/uk/400780 ... f-approval" onclick="window.open(this.href);return false;

AND...


http://www.thesundaytimes.co.uk/sto/bus ... 2013_05_18" onclick="window.open(this.href);return false;

[chickenwittle]

colleague shares anyone ?

[darren d]

So apparently we have made a profit again according to newspaper reports. Huh!! Managers get bonuses and we get nothing:-( . Its a disgrace!!! If the company has made these millions we should all get a piece of the cake from Moya down to us grafters. I'm writing to Moya when the news becomes official about our profits to ask her to cough up and recognise the hard work and commitment we ALL put in to achieve this,and to give us all a bit of a bonus too,not just the managers :-(

[blisterfeet]

Royal Mail say they're against bullying and harassment yet if its true and managers are going to get a bonus then Royal Mail don't punish bullies they reward them.

[Darren Bent]

Let say we used 25% for bonus.

100 millions is divided for Colleagues = 100,000 staff that could be enough for 1 grand bonus for every worker. So what the problem Royal Mail.

[dvbuk55]

Let say we used 25% for bonus.

100 millions is divided for Colleagues = 100,000 staff that could be enough for 1 grand bonus for every worker. So what the problem Royal Mail.

Well last year they made 211million and using your calculation it would have been 500 quid each BUT you didn't get any of that AND you can guarantee you aren't getting any of this either. It will be a nice little pot for the investors to benefit from and of course we will get our share in shares - wonder if Morrisons will take shares to pay my grocery bill. There must be people who think we don't need money just goodwill and promises.

[somerset]

Why don't we just admit it to ourselves, we will be privaitesed. No matter what the union ballots us.It will happen , This government wants it .So we made 3 to 4 hundred million pounds profit. Moya and the rest of them will get a nice little earner. Us the workers will get naff all.Always the same every year.

[worktotime]

to right we wont see a penny , its all the non payments of the p&l change over money , argueing for none payment of o/t evert week , walk collapseing , save save save that's all we ever here in our office and the dom said that's the ploy to make it look a great money earner for any investor , f***ing CROOKS.

[UnhappyGremlin]

If we have made this level of profit, then WHY do we need 'outside investment/capital'?
Can they not just plough these profits back in? I expect not, the Government will have already earmarked it for something else.
Better to sell the company, and allow it to be asset stripped, whilst simultaneously mortgaging itself up to the hilt.

[Darren Bent]

With these profits, can Royal Mail itself without any Government input ?

[clashcityrocker]

If we have made this level of profit, then WHY do we need 'outside investment/capital'?

First of all you have to ask yourself if the "profits" are real.
Accountants can play games with figures. Assets/depreciation/capital costs being deferred. None of it is real.

Secondly although it looks like a big number it is peanuts as a return for the amount of turnover.

Thirdly where exactly is the profit made?

[janitor]

This is why there is such a rush to privatise it, with all the mail center closures and sale of property which can't be repeated year in year out, once its gone its gone, and these kind of profits are unsustainable.

[dvbuk55]

This is why there is such a rush to privatise it, with all the mail center closures and sale of property which can't be repeated year in year out, once its gone its gone, and these kind of profits are unsustainable.

I disagree, there is a sustainable profit of this magnitude to be had because of the closures, price increases, fewer staff and this profit has been made without any large scale capitalisation on property - however as someone else mentioned the amount of profit is really small potatoes on the huge turnover.

[fishtank]

however as someone else mentioned the amount of profit is really small potatoes on the huge turnover.

It is but it's a bit of a false argument.
This isn't Google or Facebook with a couple of hundred employees,very little overheads and the ability to churn large turnover into large profit.

This is a hugely labour intensive job with 1,600 odd business units and a 40,000 vehicle fleet.
The ratio of profit to turnover will always look like small potatoes.

Between £300M and £400M is at the top end of what you could expect to make pre-privatisation without cutting terms,jobs and affecting service.

[dvbuk55]

however as someone else mentioned the amount of profit is really small potatoes on the huge turnover.

It is but it's a bit of a false argument.
This isn't Google or Facebook with a couple of hundred employees,very little overheads and the ability to churn large turnover into large profit.

This is a hugely labour intensive job with 1,600 odd business units and a 40,000 vehicle fleet.
The ratio of profit to turnover will always look like small potatoes.

Between £300M and £400M is at the top end of what you could expect to make pre-privatisation without cutting terms,jobs and affecting service.

Ah yes perhaps I should have qualified that a bit, 300/400 is fine, not exactly hugely useful for reinvesting and paying a dividend to shareholders so it will be small potatoes to any investor - and there's the rub - cutting terms, jobs and service is exactly what will happen to generate a larger profit.