Parcelforce optimistic despite losses
The UK Royal Mail’s parcels arm, Parcelforce Worldwide, continued to haemorrhage money in the year to March, doubling its losses to £187m (t261.8m).
Parcelforce, which in the last year has completed its transformation to an express-only service for time-guaranteed deliveries, is continuing to eliminate its unprofitable products and inefficient operations, although progress has not been as rapid as in mail operations.
But Allan Leighton, Royal Mail chairman, said Parcelforce remained on course to break even in 2004/2005 after 10 years of losses.
The number of depots has been slashed from 101 to 54, routes have been reworked and new ways of combined working and a new system of owner-drivers have been introduced.
Average daily traffic volumes are down from 400,000 to 170,000.
Accountability for the special delivery product, universal service obligation parcels and mail order returns was also switched to UK Mails, which made £66m (t92m)profit last year.
International mail and European parcels made an operating loss of £12m (t16.8m), an improvement on the previous year’s £58m (t81m) loss.
Posted: 02/06/2003
