Royal Mail: Rico Back steps down as UKPIL announces revenue down £22 million in April
Royal Mail has announced that Rico Back has agreed he will step down as Group CEO, and from the Group Board, with immediate effect. Keith Williams becomes interim Executive Chair of Royal Mail Group and Stuart Simpson becomes interim CEO of Royal Mail (UKPIL).
Royal Mail has also announced that no bonuses will be paid to Executive Directors for 2019-20. Around £25 million has been set aside for cash awards for frontline staff, in recognition of their role during COVID-19.
Performance, current trading (Monday 30 March 2020 to Sunday 3 May 2020) and financial position:
- Year on year UKPIL revenue down Royal Mail has announced that Rico Back has agreed he will step down as Group CEO, and from the Group Board, with immediate effect. Keith Williams becomes interim Executive Chair of Royal Mail Group and Stuart Simpson becomes interim CEO of Royal Mail (UKPIL). in April.
- Substantial switch from letters to parcels in the UK. UK parcels volume up 31% and revenue up 20%. • 308 million fewer addressed letters (down 33 %).
- Letter revenue down 23%, offset, in part, by 36 million more parcels.
- UKPIL costs up £40 million, driven by overtime and agency resource costs due to high levels of absence, the introduction of social distancing measures and PPE.
- GLS situation still evolving. Shift from B2B to B2C parcels across all markets in the UK and overseas. Significant volatility in parcel volumes as COVID-19 pandemic has developed across key markets.
- Liquidity position remains strong. Total liquidity (including undrawn facilities) around £1.8 billion. The Group has the ability to access the Covid Corporate Financing Facility (CCFF), if required.
- Following engagement with key stakeholders on a package of potential measures for the UK business, we will provide a further update on 25 June 2020, along with Full Year Results 2019-20, to cover possible outcomes for 2020-21, together
