LONDON: Royal mail has said full-year pre-tax profits fell 33 per cent to £267million as it took a hit from transformation costs.
The company said the fall reflects one-off items, such as pension charges, that distorted its balance sheet.
However, revenue rose 1 per cent to £9.2billion as chief executive Moya Greene hailed a “resilient performance”.
Parcel deliveries, where competition from the likes of FedEx and UPS have eaten into Royal Mail’s market share, rose 3 per cent.
Under Ms Greene, the company has embarked on a cost-cutting drive and the company confirmed that it reduced its headcount by 3,500 over the year.
She added: “We are introducing new and improved products and services and responding quickly to changing customer needs.
“These measures, alongside our emphasis on customer focus and delivering a value for money service, have helped us to maintain our pre-eminent position in UK letters and parcels and driven growth.”
In the UK, revenue fell 1 per cent to £7.6billion as letter volumes fell 3 per cent.
Adjusted annual operating profits before transformation costs – Royal Mail’s preferred measure of performance – rose 5 per cent to £742million.
The 500-year-old company was privatised in 2013 and listed on the London Stock Exchange.
Dave Ward, Communication Workers Union general secretary, said: “Royal Mail Group’s strong financial performance, in the face of tough market and regulatory pressures, shows the company is well placed to deliver future growth and innovation in the business, working closely with the CWU.
“The continued fall in letter volumes and the significant level of competition Royal Mail already faces should serve as a reminder to Ofcom that protecting daily deliveries should be the number one priority of its review.”
Brian Scott of Unite said: “Unite members will be extremely frustrated that their hard work to deliver a positive financial result is not being recognised by the company.
“It’s clear that the company can afford to reward Unite members for their hard work with an improved pay offer.
“A failure to do so will lead to the overtime ban and work to rule that our members are engaged in hitting deliveries to homes and businesses – a fact which we note is glossed over in Royal Mail’s annual report.
“As well as helping to deliver a 5 per cent increase in the Royal Mail group’s profits, Unite members have made a valuable contribution to quality of service.”
