Parcelforce gets into the black

Post Offices’ parcels division announces that it has put its losses behind it with a profit of (pounds sterling)5m

By Andrew Brown

Parcelforce Worldwide has made its first operating profit in its 15 year history. It made an annual profit of (pounds sterling)5m on a turnover of (pounds sterling)314m giving a return on sale of 1.6%. Last year Parcelforce lost (pounds sterling)6m, according to the accounts released last week.

The company says that it has seen growth particularly in the business to consumer market.

Operating costs are 1.7% higher but this includes absorbing a 7% increase in volume. “The second half of the year saw an acceleration of unit cost improvements… strong improvements in vehicle and logistics costs have in part been offset by higher

fuel costs and international conveyance costs as international volumes have risen,” the report says. The report also says the “vision” for Parcelforce is for it to be “the UK’s most trusted worldwide carrier”. It says it moves 160,000 parcels a day, and Parcelforce 24 delivers 96.1% of parcels on time and with electronic proof of delivery. The company accounts for 3.5% of the total Post Office revenue.

“The UK parcels market has become more competitive in the past year. But the hard work the business and its people have put into restructuring its operations and the focus

on delivering high quality service to its 21,000 business customers has paid off with the first full year of profitability,” says chief executive Alan Crozier.

Last Christmas the Royal Mail delivered 70 million items that had been ordered over the internet – 15 million more than the previous year.