Royal Mail

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Letter to the Royal mail Staff.

I am writing to you to tell you that our strategy aims to tackle the key challenges facing the Royal Mail group is to build a sustainable diversified business. As a sole provider of the universal service in the UK, you been part of the Royal Mail group you have to try and reach everyone’s needs. As a group we must all work together to deliver six days a week, to over 29 million addresses across the UK, at affordable and competitive prices.

Our parcel business takes up 48% of group revenue is from the parcel business. And they contributed £4.2 billion of revenues to the group in 2011-2012 which included the £1.6 billion from the European logistics business. And The amount of parcels having to be delivered is increasing.

The Parcels we deliver are the single biggest contributor to group revenues. And ourGroup external revenue increase by 4% from last year to 9.5 billion after two successive years of decline. Revenues in UKPIL, our core UK business increased from £6.9 billion to £7.2 billion UKPIL domestic parcel volumes were up 6% during the year. Traditional letter volumes declined by 6% compared to 5% in the previous year. UKPIL parcel revenue increased by 10% to £2.6 billion driven by strong growth by online retailing. Also revenues at GLS, this is our continental European parcel business increased by 5% to £1.6 billion. UKPIL letters and other mail revenue increased to £3.5 billion as a result of the necessary price increases. Also marketing mail revenues increased to £1.1 billion ( 2011, £1 billion ) . Our profit and margin business did quite well too with the Group operating profit after modernisation costs increased from £39million to £211 million. UKPL returned to operating profit after modernisation costs of £23 million and in 2011 a £120 million loss. The UK parcels operation is currently loss making. The cost allocation methodology for this part of the business is under...
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