Tag: Royal Mail

UK holidaymakers ‘can’t be bothered’ to claim over GBP 13 billion on travel insurance

Posted by | Nov 2, 2007 | |

New figures released today by Post Office Travel Services reveal that 70 per cent of UK holidaymakers are not claiming on their travel insurance when they are entitled to and are potentially missing out on over GBP 13.5 billion.

The research shows that while 62 per cent of UK holidaymakers experienced a flight delay, 22 per cent lost or damaged luggage and 15 per cent were involved in an accident or needed to seek medical treatment, less than a third made a claim on their insurance.

When asked why they did not claim, a third of people said that the excess on their policy – the amount the individual pays to make a claim – was set too high. A further 23 per cent said they simply didn’t bother to even try to claim as it was too much hassle. Nearly one in eight didn’t even realise they could.

Holidaymakers aged between 25 and 44 were the least likely to claim, with over three quarters saying they had not made a travel claim despite having experienced something which could have warranted a policy payout.

At the Post Office customers can discuss the type of insurance they need over the counter, face to face or by telephone. This will ensure they are getting the appropriate level of cover for their specific needs. The maximum excess on all policies is GBP 50 and in the event that a customer needs to make a claim, the procedure at the Post Office is simple and straightforward. Settlement is guaranteed within five working days with a valid, fully documented claim.

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Mail posts gloomy forecast

Posted by | Nov 1, 2007 | |

Royal Mail profits fell by a third in the 2006-7 financial year, mainly as a result of a sharp rise in pension fund costs.

The group faces operating at around break-even this year and next, it said.

Chairman Allan Leighton and chief executive Adam Crozier said pension costs, revenue decline through losses to competition and the overall fall in mail volumes meant Royal Mail’s letters division was heading towards break-even in the current financial year.

They added: “Without the contribution from GLS (General Logistics Systems, the group’s European parcels business), the group could again become loss-making.”

The group said profits for 2006-07 were in line with expectations at £233m, down a third, mainly due to pension costs rising by GBP 193m to GBP 722m.

Competition had developed much more quickly than anyone forecast. Rivals would this year be handling around 4bn letters, around one in every five posted – a level Postcomm had forecast would not be reached until 2010.

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European parcels operation sparkles despite postal misery for Royal Mail

Posted by | Nov 1, 2007 | |

General Logistics Systems, the European parcels operation, is turning out to be the jewel in the crown for Royal Mail, which has seen profits slashed in its domestic letters business over the past year.

GLS increased its operating profit by 15 per cent to GBP 115m on sales of just over GBP 1bn for the financial year 2006-7. And there was also good news from Parcelforce Worldwide which made an operating profit of GBP 10m – double the figure for last year and the second year running of profit after more than 15 consecutive years of losses.

Royal Mail said Parcelforce Worldwide grew its revenue by 7.3 per cent in a market that became even tougher, and delivered a record operating profit of GBP 10m. GLS grew its revenues by 4.9 per cent in a very competitive market and its operating profit increased to GBP 115m. “The results of both GLS and Parcelforce Worldwide demonstrate the group’s potential in areas where it is allowed to compete freely without regulatory constraint.”

However, profits were slashed from GBP 344m to GBP 194m in the letters business which has also gone through a damaging strike.

“Inland addressed mail volumes fell by 2.3 per cent – the first decline after many years of growth,” said Royal Mail. “The growth in email undoubtedly played a key factor in the fall and the realistic prospect facing the Company is for further volume decline. The peak in mail volumes looks likely to be behind us.”

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Royal Mail does not expect profit from letters this year

Posted by | Nov 1, 2007 | |

Royal Mail group has said its letters business will not make a profit in the current financial year, after revealing its 2006/7 profits fell 44pct to GBP 194m from the service.

Overall, the group’s operating profits, including its international parcel operations and the Post Office network, fell by 55pct to GBP 158m in the year ending March 25 2007.

Overall revenues rose 1.4pct to GBP 9.18bn, and letters revenues were unchanged at GBP 6.86bn, despite a 2.3pct fall in inland addressed mail volumes.

Chief executive Adam Crozier and chairman Allan Leighton claimed, in a statement issued with the financial results, that competition in the postal market had developed more quickly than the regulator Postcomm had thought when it fixed the price control for the company.

They claim competitors picked up one in eight letters posted in 2006/7 and will pick up one in five posted in Royal Mail’s current financial year. This is a level Postcomm forecast would not be reached until 2010.

Another point raised was that the average 13p access fee paid by competitors to use its delivery network does not cover its costs.

Looking at the first five months of the current financial year the statement said revenues are down GBP 78m over the same period last year.

The financial results drew comment from the Communication Workers Union, which after a series of strikes has recently agreed a pay and conditions deal with management that has been recommended to CWU members.

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Union ire at Royal Mail boss pay

Posted by | Nov 1, 2007 | |

Figures in the Royal Mail’s latest annual accounts, released on Tuesday, show that Adam Crozier saw his pay rise by 26 pct in the year to 31 March.

Mr Crozier pocketed GBP 999,000 for the 12 months, up from GBP 790,000 in 2005-06.

The Communication Workers Union called for a review, but the Royal Mail said Mr Crozier deserved the increase.

‘Review needed’

In addition to the Royal Mail seeing profits fall by a third for the 2006-07 financial year, it was recently hit by strike action over staff pay and job security.

The reason Adam is paid what he is paid is that he runs a big company, he does a bloody great job and I’m glad we’ve got him

Royal Mail chairman Allan Leighton

The series of strikes ended after the Communication Workers Union (CWU) accepted a pay rise for its members of 5.4 pct from 1 October, and an extra 1.5 pct from next April.

The Royal Mail had initially offered 2.5 pct.

“Postal workers have had to take eight days of strike action this year to get any pay rise at all, while the chief executive receives GBP 1m,” said CWU Deputy General Secretary Dave Ward.

“It’s time to review pay at the top of the business.”

‘Bottom end’

Royal Mail chairman Allan Leighton defended Mr Crozier’s pay.

“The reason Adam is paid what he is paid is that he runs a big company, he does a bloody great job and I’m glad we’ve got him,” said Mr Leighton.

“Getting good people to run this company is very difficult.

“If you compare his package to FTSE 100 chief executives then it’s at the bottom end, not the top end.”

Mr Crozier is additionally in line for a bonus of up to GBP 1.1m, to be paid out next year if the Royal Mail meets certain performance targets.

He took up the top job at the Royal Mail in 2003.

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