Royal Mail chief Moya Greene delivers improved profits

[TrueBlueTerrier]

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This is quite a year for Canadians in London. Just before Mark Carney arrives to head the Bank of England in July, Moya Greene, chief executive of Royal Mail since 2010, announced improved profits on Monday that clear the way for privatisation.

Operating profit more than doubled from £152m to £403m on a like-for-like basis in the year to March 31. Revenue rose 5 per cent to £9.15bn.


Sources of revenue, growth rates and net profit

The improvement was achieved through cost control and higher revenue from packages and parcels ordered by internet shoppers, though it was also helped by last year’s sharp rise in stamp prices.

Pre-tax profit was up a more modest 60 per cent at £324m but it was still a notable achievement for the first woman and first non-Briton to run Royal Mail since Henry VIII established a “master of the posts” in the early 16th century.

“I don’t think it mattered that I was Canadian,” Ms Greene told the Financial Times. “It did help to know the business and come at the business here in the UK with a really fresh pair of eyes and no baggage.”

The previous regime of Allan Leighton, chairman, and Adam Crozier, chief executive, made some progress in modernising the company but was dogged by difficult industrial relations.

Ms Greene, hired by chairman Donald Brydon, previously headed Canada Post, the country’s federal-owned postal service, where she was credited with increasing quality of service and efficiency.

Ask insiders in Britain’s postal industry about her and phrases such as “determined”, “strength of willpower” and even “remorseless” are often heard.

“She is hugely dynamic, she has handled industrial relations very well, she is totally committed to modernisation and is one tough cookie,” said Richard Hooper, whose reports on the postal service helped shape the privatisation plan. “She is a tough woman in a male mail world.”

Ms Greene, whom the Daily Mail once described as a “compact blonde Canadian”, said: “Determined I recognise but I do know when to throw in the towel. There is no sense in going at it like a dog with a bone.”

With privatisation yet to be achieved, she refuses to be carried away. “We should let a few years go by and let’s see how we deliver over the medium term,” said Ms Greene, who rarely gives interviews.

After arriving, she was particularly dogged in badgering the coalition and the regulator, Ofcom, which took over from Postcomm, to relax the regulation regime.

“Nothing like this existed in the world and it had brought the universal service in Britain to its knees. There was no way for the company to ever be successful if we couldn’t sweep a lot of that away,” she said.

I am absolutely proud to lead the Royal Mail - Moya Greene, chief executive

Royal Mail has sometimes used its new freedom controversially, as when it increased the price of first- and second-class stamps by 14p to record highs. Analysts say it has yet to match the efficiency of foreign operators such as Deutsche Post and TNT.

David Stubbs, an independent postal consultant, said Ms Greene had succeeded by focusing on improving industrial relations, ensuring political will for privatisation and improving profit margins.

Ms Greene said the company was well positioned to continue to benefit from the structural change to e-retailing and manage the decline in letters. She was “incredibly disappointed” by the Communication Workers Union’s threat to boycott mail delivered for rival companies but declined to say whether Royal Mail would seek an injunction.

The chief executive said she had no plans to leave after privatisation. “I am absolutely proud to lead the Royal Mail and I will stay as long as shareholders think I am contributing something to the company”.

A divorced mother with one daughter, she lives in Fulham and enjoys country walking all over the UK. Ms Greene has walked the southwest coastal path, in the Trossachs, Ben Lomond, the Isle of Skye and several Lake District fells. She also enjoys poetry and has recently been reading Robert Frost.

She declines to offer advice to Mr Carney, except: “It’s a lovely, welcoming city and a wonderful country.”
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Investors boost sell-off hopes

Investors welcomed Royal Mail’s results, boosting the coalition’s hopes for privatisation, probably through an autumn stock market float, write David Oakley and Brian Groom.

One equity head at a UK investment management group said: “We like Royal Mail a lot. We think this is a good business as it is a trusted name, with a strong brand. The jump in profits is a good thing, although the profit margins are still not that high. However, we think this company has a lot of potential and will deliver.”

The head of European equities at another UK fund management group said: “We are likely buyers of Royal Mail once it goes private. We like the way the business has been reconstructed and split up. The packages and parcels internet business is a very good one that is likely to compete well in the marketplace.”

A portfolio manager at a European group added: “The company has been led well. It also has a very well known, household name that will help its business and win customers.”

Operating profit in Royal Mail’s UK letters and parcels business rose from £33m to £294m, helped by parcel deliveries for online retailers and price rises.

David Stubbs, a postal consultant, said a valuation of £2bn-£3bn was “reasonable”. It still had room to improve efficiency and its 4.4 per cent profit margin was below the 8-10 per cent achieved by some foreign operators, he added.

Letters revenue rose 3 per cent despite an 8 per cent decline in volumes, while UK parcel revenues were up 13 per cent. Parcels now account for 48 per cent of group revenue.
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Leader with the stamp of authority

Moya Greene, 58, was born in St John’s, Newfoundland, the daughter of a special education teacher and a fix-it shop owner, writes Brian Groom. She is a lawyer who graduated from Memorial University and Osgoode Hall law school.

She has held federal government positions in seven ministries, including Transport Canada, where she was assistant deputy minister and oversaw the privatisation of Canadian National Railway and deregulation of the airline industry.

In the private sector, she worked for TD Securities, Canadian Imperial Bank of Commerce and Bombardier before becoming chief executive of Canada Post in 2005.

At Canada Post she placed an emphasis on cost-cutting by reducing absenteeism and increasing automation, trebling profits despite a
drop in revenues.

[houseoflords]

Not a mention of why profits are up due to her selling alot of the Mail centres off and delivery offices (real estate), I wonder when it's privatised and who ever buys into it then will wonder why its not making as much profit as they were told it was, suppose it will be the workers fault then and jobs will have to be cut, once all the family silver has been sold then what?? I ask in despair.

[RedBagMan]

Some cracking quotes in here ....

http://www.ft.com/cms/s/0/6ef1a352-c226 ... z2TvhTwJvb

Operating profit more than doubled from £152m to £403m on a like-for-like basis in the year to March 31. Revenue rose 5 per cent to £9.15bn.

The previous regime of Allan Leighton, chairman, and Adam Crozier, chief executive, made some progress in modernising the company but was dogged by difficult industrial relations.

Ms Greene, hired by chairman Donald Brydon, previously headed Canada Post, the country’s federal-owned postal service, where she was credited with increasing quality of service and efficiency.


With privatisation yet to be achieved, she refuses to be carried away. “We should let a few years go by and let’s see how we deliver over the medium term,” said Ms Greene, who rarely gives interviews.

Royal Mail has sometimes used its new freedom controversially, as when it increased the price of first- and second-class stamps by 14p to record highs. Analysts say it has yet to match the efficiency of foreign operators such as Deutsche Post and TNT.

David Stubbs, an independent (?) postal consultant, said Ms Greene had succeeded by focusing on improving industrial relations, ensuring political will for privatisation and improving profit margins.

Something for us all to get our heads around ...

[maisymoo04]

Can I just say why is it moya bloody f@@@ Greene got these profits she's done sod all it's us the postman and woman who have done all the hard work another 2 million bonus for her with her penthouse over looking the Thames . All the witches done is a few interviews with staff in the courier and visited a few sites . Fu@@ off back to Canada makes me sooooo mad aaarrgghhh

[bexhil palace]

Couldn't agree more. it really pissed me off when the media reported that the rise in profits
was due the increase in stamp prices, and the rise in packet traffic.
What about all the hard working Posties, working their nuts off, in all weathers?
Whatever Moya, and her cronies come up with,it means nothing without us,and it's about time they stopped treating us with contempt,
and rewarded us accordingly.(I won't hold my breath).

[UnhappyGremlin]

Isn't it funny? (Well, not really).

When we're doing well, it's all hail Moya, what a fabulous job she's done/is doing.

When we're doing/performing financially badly, it's the staffs fault, and poor industrial relations etc.

Typical management, when it's good, love the praise (even though it's overly excessive and very misplaced), and when things are bad, the pass the buck so fast there isn't even a single thing, natural, man made or otherwise that could catch it.

[martin the green]

no mention of the pension being taken over by the con-dem