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Royal Mail reports record Christmas performance
Source:http://www.postwatch.co.uk/, Source date:
Royal Mail today announced a record Christmas trading performance, with an £80 million increase in sales in the four weeks to December 25th – one of the best performances announced to date by a large UK company over this Christmas trading period.
Christmas trading figures show that for the first time, Royal Mail’s revenue across the company exceeded £800 million in one month.
In December:
- Royal Mail’s letters business recorded an 8% growth in revenue – some £46 million higher than a year ago, helped by a record Christmas mail bag containing over 100 million more letters and cards than in 2003, and a surge in e-tailing/home shopping in which Royal Mail played a major part.
- Post Office Ltd grew its business by more than 17% – up some £17 million compared to December 2003, with the Post Office’s growing range of financial and banking services helping to fuel the rise.
- GLS, Royal Mail’s European parcels business saw its turnover increase by over 25% with a £16 million rise in revenue.
- Parcelforce Worldwide’s sales rose by more than 12% with a £4 million rise in revenue in a market which – like GLS’s – is hugely competitive.
Adam Crozier, Royal Mail’s chief executive, said the Christmas trading performance put the company on course to make a profit on day-to-day operations of more than £400 million in the financial year to March 2005, which will allow Royal Mail to achieve its plan of giving its people a ‘Share in Success’ payment of at least £800.
“We are determined to reward employees for their part in the success of Royal Mail,” said Crozier, adding that Royal Mail had recently announced it was making more than £1 million a day on its operations – a turnaround from the losses of well over £1 million a day it was recording just three years ago.
While Royal Mail’s chairman, Allan Leighton, said that preliminary figures were also indicating that quality of service to customers during the Christmas period was among the best levels in at least a decade, Crozier cautioned: “Royal Mail must perform even better as we go forward. There can be no let-up in our drive to deliver high quality services to our customers, day-in, day-out, while generating profits to reinvest in our future and give our shareholder an acceptable return.”
Crozier acknowledges that while Royal Mail is making remarkable progress, the biggest challenges lie ahead as the market is set to be open to full competition in less than a year’s time.
