Summary
Royal Mail reported a profit for the first time in three years, thanks to efforts to improve its business under new ownership. The company increased its focus on parcel deliveries, as letter volumes continued to decline. Despite the profit, the company still faces challenges, including potential changes to its delivery obligations and ongoing financial concerns.
Key Facts
- Royal Mail reported a profit of £12 million, excluding redundancy costs, for the first time in three years.
- Parcel deliveries went up by 6%, while letter volumes decreased by 4% in the year to March 31.
- New ownership under Czech billionaire Daniel Kretinsky has focused on modernizing and expanding more profitable areas, like parcel deliveries.
- Royal Mail plans to install 3,500 solar-powered postboxes across the UK to improve service for small parcel deliveries.
- The company's Universal Service Obligation, which requires certain delivery standards, is under review.
- Royal Mail suffered significant financial losses last year, totaling £336 million.
- Kretinsky’s group agreed to keep Royal Mail’s brand name and UK headquarters for at least five years.
- The UK government retains a "golden share" to approve major changes to Royal Mail’s structure.
