Tag: UK

Royal Mail puts value at zero to calm share fears

Royal Mail is worth nothing, the organisation has told the Government and politicians, in an effort to take the political heat out of its push to give employees shares in the business.

The state postal service, in arguing that the Government effectively would be giving nothing away if staff were given shares, contends that the shares would also be worthless when they are issued.

Royal Mail has calculated that it is worth nothing because its assets, which are thought to be valued at about GBP5 billion, are cancelled out by its pen-sion deficit, which stands at GBP5.6 billion.

Royal Mail has told the Treasury and the Department of Trade and Industry that the group would be worth GBP4 billion by 2010-11, triggering shares worth GBP5,000 per employee.

It believes that it can build up from a zero balance to a GBP4 billion value through modernisation and increased productivity, which will come from giving staff an incentive through the share-ownership programme.

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Nationwide Government Mail service launched

The Government Car and Despatch Agency (GCDA) has launched Government Mail in partnership with Amtrak Express Parcels. The nationwide service gives Government direct access to a nationwide network of 100 delivery centres and 1200 vehicles providing next day delivery of documents and parcels.

Government Mail is part of the Department for Transport (DfT) and is a result of a rebranding of GCDA’s InterDespatch Service; an established distribution service that has traditionally carried mail between government departments. With the launch of Government Mail, the Agency is able to provide a true one-stop-shop solution to meet all of the varied collection and delivery requirements of Government and the wider public sector.

Run in partnership with Amtrak, Government Mail will be providing next day delivery to destinations nationwide, offering best value services across government. The service matches the best capabilities of established public and private enterprises, allowing Government to single-source all mail and parcel requirements, reduce costs and improve efficiency.

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