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Royal Mail to cut 2,000 jobs after profit falls

Christian Fernsby ▼ | June 25, 2020
Royal Mail announced its results for the full year ended 29 March 2020 and provided an update on trading since the year end.
Royal Mail
Royal Mail   UK business has not adapted quickly enough
Keith Williams, interim Executive Chair, Royal Mail Group, commented: "In recent years, our UK business has not adapted quickly enough to the changes in our marketplace of more parcels and fewer letters.

Topics: Royal Mail

"We're taking action on costs, which will result in a £130 million saving in people costs next year and flat non-people costs, along with a reduction of around £300 million in capex across the Group over the next two years.

"Regrettably, we are also proposing a management restructure impacting around 2,000 roles. We are committed to conducting the upcoming consultation process carefully and sensitively. We will work closely with our managers and their representatives during this difficult period, including supporting them as they transition into the next stage in their careers."

Group revenue increased by £259 million, or £396 million after adjusting for the 53rd week in 2018-19.

· Reported operating profit before specific items down £124 million, driven by lower UKPIL profitability.

· Dividend per share of 7.5p reflects Board decision not to recommend final dividend for 2019-20.

· Total liquidity (including undrawn committed facilities) of around £1.9 billion. Includes £925 million syndicated bank loan facility of which £225 million is undrawn.

·Operating specific items charge of £162 million, down £19 million.