Royal Mail profits soar but sales are sliding
Friday 21 May 2010
Royal Mail's profits shot up by 26 per cent last year, the company revealed yesterday, as the Government confirmed plans to part-privatise the group.
Operating profits soared to £404m despite steadily falling mail volumes and last autumn's strikes, thanks to cost-cutting measures which included 8,000 voluntary job cuts. But revenues dropped for the first time in a decade – by £200m to £9.4bn – as the postal operator handled 13 million fewer letters than five years ago. And three-quarters of the planned £2bn investment programme has now been spent.
Royal Mail's chairman, Donald Brydon, said: "These are good results against a backdrop of harsh economic conditions and the relentless reduction in the number of letters sent by customers, not just in the UK but around the world."
But he acknowledged that "huge challenges" remain, not least a yawning pension deficit, which is expected to be several times the £3.4bn estimate from 2006.
Plans for "an injection of private capital" into Royal Mail were included in yesterday's extended coalition agreement from the Conservative-Liberal government. But the statement set out no clear timetable for the scheme, and a similar plan was abandoned by the previous government in the face of stiff backbench opposition.
The new proposal will stir up further trouble with the Communication Workers' Union, which took industrial action last year. Billy Hayes, the trade union's general secretary, said: "This is old politics wrapped in new language. The British public has consistently rejected the privatisation of Royal Mail. The move to regurgitate failed policies will be deeply unpopular."
- 1 PlayStation and Xbox hacked by Lizard Squad
- 2 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 Vagina canoe artist defends herself over ‘obscenity’ charges
- 5 The Queen’s speech 2014: Recap and Twitter reaction to Game of Thrones reference
PlayStation and Xbox hacked by Lizard Squad
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
Boxing Day snowfall set to push even more bargain-hunters online for sales
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...