Record profits for UK Royal Mail

The Royal Mail has made record profits of GBP 537 million, triggering a bonus of over GBP1,000 for 180,000 postal workers, it was announced.

The state owned operator also revealed that first class mail deliveries were the best in a decade while the number of letters being lost have been cut by half in the past year.

Chairman Allan Leighton said postmen and women had achieved a “fantastic turnaround” and would now benefit from one of the biggest profit shares with employees in UK corporate history.

Every worker will receive GBP1,074, amounting to GBP218 million of the Royal Mail’s profits.

Details of payments to executives will be revealed later although there has been speculation that Chief Executive Adam Crozier was paid almost GBP3 million last year.

The Royal Mail was losing more than GBP1.5 million a day before it launched a renewal plan three years ago but today’s figures showed that the organisation is now making over GBP2 million a day in profit.

Quality of service to customers has hit the best levels in a decade with 92.8percent of first class mail being delivered on time between January and March, 0.3percent above the target.

The 98.5percent target for delivering second class mail was bettered by 0.2percent.

But almost half of the Royal Mail’s 15 targets were still not being achieved, today’s figures showed.

The number of letters lost fell from 28 million to 16 million last year, with 99.92percent of mail arriving safely.

The GBP537 million profit amounted to an increase of 144percent on the previous years profit of GBP220 million.

The Royal Mail said its income reached a record GBP8.96 billion in the last financial year while a record 84 million letters a day were handled, one million more every day than the previous year.

But Post Offices lost GBP110 million and executives warned that the future of the network rested on the ability to sell a growing range of products and services.

Mr Leighton said that despite the profits there was still “a huge amount to do”.

“Transforming our operations, cutting our costs and above all winning the support of our people for the modernisation plan with its top priority being to improve customer service has been Royal Mail’s greatest achievement in decades.

“But competing successfully in an open mail market is going to be even more difficult. We’ve a mountain to climb and we’ve only reached the base camp.”

Mr Crozier added: “The hurdles we face are formidable but we are determined to change fundamentally what we do and how we do it.

“Postmen and women can be justifiably proud of what they have already achieved. They have done a fantastic job.

“The huge task now facing Royal Mail is to make the cultural change needed to succeed as a commercial business and to become the postal operator of choice for customers in an open competitive market.”

More than 33,000 jobs have been cut under the renewal plan, with half effecting managers and administrators, while 2,500 urban Post Offices have closed.

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