Partly Cloudy

Partly Cloudy

max temp: 7°C

min temp: 0°C

Search

UK: Parcels help Royal Mail profits to soar

PUBLISHED: 14:14 13 November 2012

Royal Mail profits are up

Royal Mail profits are up

Royal Mail reported a huge increase in half-yearly profits today as growth in parcel deliveries made up for a continued fall in the number of letters being sent.

Group operating profits in the six months to September were £144 million, compared with £12 million in the same period last year.

UK parcel revenue was up by 13%, with parcels representing 47% of total group revenue.

Revenue from letters was 2% higher following the increase in stamp prices earlier this year, although letter volumes fell by 9%.

The group said in its interim report today that preparations are now under way for the sale of Royal Mail.

“Obtaining external capital is a key part of the transformation process as we become a more parcels-focused business and make the investment in technology to do so,” said the report.

Royal Mail chief executive Moya Greene said all of the group’s main businesses were profitable.

She highlighted the turnaround in the UK parcels, international and letters business (UKPIL), where a loss of £41 million in the half year to last September has been converted into a profit of £99 million.

“Royal Mail has experienced the negative impact of e-substitution, which is driving the structural decline in the traditional letters market.

“Conversely, we are seeing the positive impact that online retailing is having on our parcel volumes,” she said.

Ms Greene said Royal Mail’s modernisation programme involved “painful, difficult change”, with almost every aspect of work being transformed.

“I believe our people generally understand the need for the company to continue to adapt to a rapidly changing postal market and that the company and the unions need to work together for the benefit of both our customers and our colleagues.

“We have made significant progress across all fronts, but more remains to be done. We are focused on continuing the turnaround of our business and securing the external capital we need to complete the transformation of Royal Mail.”

Search hundreds of local jobs at Jobs24

Whatever your views on the UK leaving the European Union, it’s pretty clear that it is going to happen at some point.

But what still remains uncertain is the exact terms of this departure.

Broadcasting group Celador faces a rival bidder for the renewal of the Ipswich commercial radio licence which it acquired last year.

High winds have brought down overhead power cables leaving homes in many Suffolk and Essex communities without electricity.

The north Essex-based Flying Trade Group has expanded its leisure operation with the addition of the Bricklayers public house in Colchester.

Britain’s offshore wind capacity could increase five-fold by the 2030s, cutting carbon emissions and saving on consumer bills, analysis suggests – with the Norfolk and Suffolk coast in a strong position to benefit.

Management Jobs

Show Job Lists

Most read

Topic pages

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24