Loss Making

[Murdoch]

So over the last 10 months, a lot has been said about Royal Mail haemorrhaging money, at one point we kept hearing "we're losing £1,000,000 a day" as the company pleaded poverty.

The reality on the ground seemed very different, we've been so busy for so long with the volume of increased parcels, it seems to me that this would mitigate the covid-19 related losses.

Turns out that the new prediction for this financial year to April, are group adjusted operating profits "well in excess of £500m".

Quite a turnaround, don't you think?

Source: Royal Mail to retain 10,000 temporary workers
TRADING UPDATE FOR THE NINE MONTHS ENDED DECEMBER 2020 : Busiest quarter for parcels in Royal Mail's history

[Trumanity]

Lies, lies and damned statistics

[solar_plexus]

For the nine months to December 2020 group revenue was up by £1.1 billion. In November, they projected that revenue growth for the full year would be between £380 million to £580 million so it's not surprising that a loss can happily swing to a profit.

[koolishy67]

This is normal in private business just imagine how many shares Rico Holding at the moment and also he bought hundreds and hundreds between £1.50 to £2.50 plus another European Investor bought hundreds @1.60 just imagine where all this profit going to go biggest mistake done in British history sold royal mail £3.30 thanks to tory

[Jpro747]

Never believe a word they say

[cockneyrebel]

Told you all often on here re the profit we would make
And yet 91% voted for for 2.7% and 1% WHY ??
Would save jobs ? Ensure our future ?
Best deal in light of current crisis ??
National Average wage in UK, is still just over £25,000 regardless of Covid and job losses ??
We set aside £147 million re 2,000 management losses re first 6 months figures of last year ??
How many have gone so far ??? Is it NONE ????
We have never worked so hard or had more work to deal with, in the entire life of Royal Mail !!
Lot of staff will pay for it re health/injury in the future, let alone current covid issues.
Royal Mail are one the richest Companies in the UK re land/cash assets etc
The workforce efforts warrant so much more than above percentages.
Whilst I have always accepted you have to have Senior personnel and they paid accordingly, as i worked in the City and other fields, before I came here
But if I was Mr Thompson or Mr Williams I would be looking at something extra than just the above for the footsoldiers in 2021
ITS DESERVED and would make all of us feel our Senior personnel know it !!

[Murdoch]

For the nine months to December 2020 group revenue was up by £1.1 billion. In November, they projected that revenue growth for the full year would be between £380 million to £580 million so it's not surprising that a loss can happily swing to a profit.

It was so blindingly obvious, that it's almost like Royal Mail deliberately downplayed the potential of operating at a profit this year, almost like that helps their agenda or something.

[centenaryman]

take back to viewtopic.php?f=1&t=98169

a few place have made a killing through covid....delivery firms,,,supermarkets,,online card shops LOL even look at astra zeneca profits today

plenty of organisatios have struggled or gone under.....were offered an alright pay rise ppl tell me to be grateful we have a job let alone a pay rise

royal mail year upon year lie after lie

ive had 16 years of mail is dropping 7% a year...making losses on post bla bla
then suddenly a year of the most parcels this place has handled ever and the courier tells us mail revenue props up the parcel revenue we loose cos the way it has to be sorted LOL

and i repost dpd has a few vans on my area now,,,,were still being asked to use our own cars even 1 of the dpd vans is electric.....and no im not in a big city

[Zicomurphy]

For the nine months to December 2020 group revenue was up by £1.1 billion. In November, they projected that revenue growth for the full year would be between £380 million to £580 million so it's not surprising that a loss can happily swing to a profit.

It was so blindingly obvious, that it's almost like Royal Mail deliberately downplayed the potential of operating at a profit this year, almost like that helps their agenda or something.

Yeah, for the life of me I can’t imagine why they would do that when the USO was being reviewed and they were in negotiations with the union about a pay increase.

[rambo1]

This is normal in private business just imagine how many shares Rico Holding at the moment and also he bought hundreds and hundreds between £1.50 to £2.50 plus another European Investor bought hundreds @1.60 just imagine where all this profit going to go biggest mistake done in British history sold royal mail £3.30 thanks to tory

If you mean the profit is going to Rico and the Chech guy, then you would be wrong as royal mail aren't paying a dividend at the moment. If you mean they can sell their shares (like you and me) then that money is not coming out of profits, if they're selling shares to make money, then somebody else is buying them. The profits are going back into the business and to pay our wage increase.

[rambo1]

take back to viewtopic.php?f=1&t=98169

a few place have made a killing through covid....delivery firms,,,supermarkets,,online card shops LOL even look at astra zeneca profits today

plenty of organisatios have struggled or gone under.....were offered an alright pay rise ppl tell me to be grateful we have a job let alone a pay rise

royal mail year upon year lie after lie

ive had 16 years of mail is dropping 7% a year...making losses on post bla bla
then suddenly a year of the most parcels this place has handled ever and the courier tells us mail revenue props up the parcel revenue we loose cos the way it has to be sorted LOL

and i repost dpd has a few vans on my area now,,,,were still being asked to use our own cars even 1 of the dpd vans is electric.....and no im not in a big city

True. Also makes me laugh when they are raking in the revenue on one hand and 'saying sorry' to the public for delays in delivering. It's like an airline saying sorry, we know you paid full price for the ticket but we're busy and don't have enough planes, you can go in 2 or 3 days. If you don't have enough staff or vans ,hire some more with all the money but don't loose the quality of service people are paying for and blame it on covid. Rishi is coming after the companies which have done well out of lockdown with big tax bills, you wait and see.

[Murdoch]

take back to viewtopic.php?f=1&t=98169

Yeah that thread is almost identical to this, except the numbers released are even greater than predicted. Note that Royal Mail have stated the operating profit will be well in excess of 500 million...

So god knows what the final figures will be at the end of the financial year, especially given how long this lockdown might last, and with summer holidays seemingly on hold...

[clockworkjerk]

I'd guess the "£1million loss a day" isn't a business loss per se - but more a waste in inefficiency from a management perspective - stuff like, early finishes(who don't start early for free), ghost, people just being slow and not overly managed for it, being ultra dated from a HR standpoint, all sorts of stuff that's essentially wasted money.

They wouldn't be hiring at all if they were losing a million a day from a business standpoint. Forget agreeing a payrise they don't have to give as it's way above min wage anyway .... that backpays and will cost shedloads.

[Woody Guthrie]

It's quite simple to manipulate a loss from a profit in an interim report.
You just underestimate potential revenue and overstate projected costs.
It makes good business sense of you're in the middle of a pay negotiation with the union and I don't blame them.
I do however take issue with our union feeding us the same line of bullshit.
It makes them either extremely naive or incredibly duplicitous.
I'm not sure which worries me the most.

[Seymour Buts]

I believe the 500 million figure referrs to the group, which includes GLS, which was always profitable. The potential losses refer to the UK operation.