Overcast

Overcast

max temp: 11°C

min temp: 6°C

ESTD 1874 Search

UK: Parcels help Royal Mail profits to soar

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.

shares

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.”

shares

0 comments

David Halliday, managing director of Seafast Logistics.

A small but growing specialist logistics firm based in Suffolk is among a select group of companies celebrating today after scooping a prestigious national accolade.

Suffolk cider and vinegar maker Aspall was named Business of the Year at last year's EADT Business Awards.  From left, Tom McGarry of EDF Energy, Barry Chevallier Guild of Aspall and Sarah Howard,  of SuffolkChamber.  	
Picture: Lucy Taylor

Tomorrow is the final day for entering the 2015 East Anglian Daily Times Business Awards.

The Bernard Matthews processing plant at Great Witchingham.

Poultry company Bernard Matthews has revealed signs of recovery by posting a significantly reduced annual loss.

Sarah Sharlott, chief executive of the Ipswich-based Realise Futures.

Sarah Sharlott, chief executive of Ipswich-based Realise Futures, has been giving budding social entrepreneurs “down under” the benefit of her experience of heading an award-winning social enterprise.

The price war between the UK's supermarkets is causing problems for their suppliers and for smaller food retailers, according to a new report.
Photo: Getty Images/Pixland

The supermarket price war is having a “devastating” effect on suppliers and smaller grocers after a report showed the number of food and drink manufacturers in “significant” financial distress jumped by 94% on a year ago.

Frank Brumby, eastern region chairman of R3.

A new website designed to guide the region’s creditors through the insolvency process has been launched by the eastern branch of insolvency trade body R3.

Alex Till of Menta.

Enterprise agency Menta has launched a new Digital Enterprise Engagement Programme (DEEP), offering newly formed local businesses and those who are self-employed access to free digital training courses.

Solar farm. Library image.

A proposed solar park in Wix has been tipped for approval by council planning officers.

The headquarters of Realise Futures in Ipswich.

Ipswich-based social enterprise Realise Futures has won a contract to provide supported employment services for adults with disabilities across a wide area of Essex.

Stage 5 of the Womens Tour passes through Onehouse on their way to Bury St Edmunds last year

Schoolchildren will also be involved in an evening of activities in Bury St Edmunds ahead of the start of a major women’s cycling event.

Most read

Most commented

Topic pages