Profits collapse at Royal Mail as post volume falls
Royal Mail has reported an 80 per cent slide in profits to £39m driven by the decline of its mail business.
Total revenues for the group fell to £9.2bn mainly due to a four per cent dive in its letters and parcels operation, falling £120m last year or £2m a week — its largest loss in seven years.
The group’s chief executive Moya Greene said that the next two years “would be challenging” as the group makes further job cuts and mail centre closures to try and reduce costs.
“With the decline in our volumes, we are going to be a smaller company in the future than we are today,” Greene said.
Cash payments of £771m were made towards its pension fund deficit, which has halved from £8bn to £4.5bn.
Operating profit was £39m in 2010, down from £180m in 2009.