UK Royal Mail 'losing £2m a week'

The Royal Mail is still losing at least £2m a week, its new chief executive has admitted.

Adam Crozier told the BBC the continuing “sizeable losses” were disappointing but the company had “definitely turned the corner”.

But he added that he still faced a huge task turning things round.

He was speaking to BBC business editor Jeff Randall in his first interview since resigned as head of the Football Association last October.

“We can’t take our foot off the gas. But we have definitely turned the corner,” he said.

Mr Crozier is determined to increase profits
“I think a lot of progress has been made.

“We still have a long, long way to go before this organisation returns to profitability,” he said.

The prices of first and second class stamps are due to rise by a 1p next week as part of efforts to drive profits.

But the Royal Mail made losses of £1.1bn in 2001 alone compared with making a total profit of £2.5bn in the 1990s.

The loss-making firm has already announced 30,000 job losses are to go.

‘Old-fashioned’

When job cuts were announced last year, Trade and Industry Secretary Patricia Hewitt said the redundancies were unavoidable if a high-quality postal service, offering good and secure jobs was to be created.

But Graham Corbett, of the Postal Services Regulator, said Mr Crozier still faced a huge task in turning things around.

“Royal Mail is the last of the big old-fashioned state enterprises.

“It is like moving a super tanker around,” he said.

But Mr Crozier said he was ready for the challenge.

“The one thing this organisation has failed to do in the past is execute plans and really deliver them on the ground.

“It about getting our sleeves rolled up and really making things happen.”