Tag: UK

Royal Mail Group’s Chairman, Allan Leighton, said today the first signs of financial stability had emerged in the interim results for the first half of the year. In the six months to the end of September 2002, the company made a trading loss of £147 million, £72 million less – a 33% improvement – compared to the first half of the previous financial year. Losses amounted to £1.1 million a day, compared to a £1.7 million daily loss in the first half last year, and an average of £1.2 million a day in the whole of last year.

The postal regulator Postcomm is set to climb down over price controls on the Royal Mail after warnings that its proposals could put the organisation out of business.

Martin Stanley, the chief executive of Postcomm, said yesterday that he expected the regulator to come up with a modified set of proposals which would be acceptable to Royal Mail.

Allan Leighton, the Royal Mail chairman, claims the price proposals as they stand would cut its revenues by £460m and force the organisation to default on a £3bn loan agreement with the Government.