Parcelforce “outpacing rivals”, says Greene
Royal Mail boss Moya Greene claims Parcelforce Worldwide has “outpaced its key rivals” in terms of growth.
The UK operator’s express parcels business reported “strong revenue growth” as well as record profits for the 2010-2011 financial year.
Revenues rose by 5% to £420m, the company said, adding that volumes in the “highly competitive business to business markets grew by 15%”.
Chief executive officer Greene said: “Parcelforce Worldwide has had an exceptional year. In a market where competition is open and intense it has increased revenue and profits and has outpaced all its key rivals.”
Profits at the parcels business have trebled over the last four years, at a time when declining letter mail volumes have hampered overall Group results.
Earlier this month, Royal Mail revealed a drop in group operating profit of £141m, as a result of falling revenues. The group recorded a figure of 39m, compared to £180m for the previous year.
A 4% drop in core mail volumes saw revenues fall from £9.3bn to £9.2bn, with the ‘UK Letters & Parcels and International’ division (UKLPI) losing £120m over the course of the year – a figure of £2m a week. The unit made a profit of £20m during the 2009-2010 financial year.
Speaking at time, Greene said the company remains in “significant financial difficulty”, and that the business will be challenged to reduce costs even further over the coming years.
Parcelforce Worldwide’s strong results come as finance director Robert Peto leaves the business.
Peto will take up the same position at Rentokil Initial’s courier firm City Link, who has also appointed Royal Mail’s chief customer officer David Smith as its new managing director.
