The Upcoming
  • Culture
    • Art
    • Cinema
      • Movie reviews
      • Film festivals
    • Food & Drinks
      • News & Features
      • Restaurant & bar reviews
      • Interviews & Recipes
    • Literature
    • Music
      • Live music
    • Theatre
    • Shows & On demand
  • Fashion & Lifestyle
    • Accessories
    • Beauty
    • News & Features
    • Shopping & Trends
    • Tips & How-tos
    • Fashion weeks
  • What’s On
    • Art exhibitions
    • Theatre shows
  • Tickets
  • Join us
    • Editorial unit
    • Our writers
    • Join the team
    • Join the mailing list
    • Support us
    • Contact us
  • Interviews
  • Competitions
  • Special events
    • Film festivals
      • Berlin
      • Tribeca
      • Sundance London
      • Cannes
      • Locarno
      • Venice
      • London
      • Toronto
    • Fashion weeks
      • London Fashion Week
      • New York Fashion Week
      • Milan Fashion Week
      • Paris Fashion Week
      • Haute Couture
      • London Fashion Week Men’s
  • Facebook

  • Twitter

  • Instagram

  • YouTube

  • RSS

Current affairs

Post Office profits surge as government prepares for privatisation‏

Post Office profits surge as government prepares for privatisation‏
22 May 2013
Patrick Corby
Avatar
Patrick Corby
22 May 2013

The Royal Mail has increased its operating profits by more than half, from £152 million to £403 million, since March 2012, strengthening the government’s conviction towards privatising the company.

Operating profits are up from 1.7% to 4.4%, generating a £334 million profit for the state-owned company. Since 2010, when a modernisation of the company was implemented, the Royal Mail has reduced itself by 30%, heavily cutting its costs.

The improvements have been achieved through higher revenues brought in through online packages surging in demand along with the increase in the price of stamps, while the company cut costs across operations.

Letter revenues in the company rose 3% despite the fact that their total volume fell 8% last year. Parcels on the other hand have increased 13% with the increasing tendency towards shopping online, an operation which now accounts for 48% of the company’s revenue.

“We are well positioned to continue to benefit from the structural change to e-retailing, which is driving increases in parcel volumes, and to manage the decline in letters,” said Moya Greene, chief executive of the Royal Mail.

As with Lloyd’s Banking Group and the Royal Bank of Scotland, the UK government is planning to privatise the Royal Mail this financial year, in a deal that could be worth £2-3 billion, by floating Royal Mail shares on the Financial Times Stock Exchange (FTSE).

British business secretary Vince Cable has made the case for privatisation, saying: “They’re going to need very large sums of capital if they’re going to compete against the email which is taking away much of their business and invest more in parcels which is the growth business.”

Patrick Corby

Related Items

More in Current Affairs

Changes to expect during menopause

The editorial unit
Read More

Nek brings Italian pop rock to the Shepherd’s Bush Empire

The editorial unit
Read More

Why Equity Linked Savings Schemes is a preferred tax saving?

The editorial unit
Read More

How the world’s top designers would rebrand political parties

The editorial unit
Read More

Royal baby furore: Proof that the British monarchy is still popular?

Eoin O’Sullivan-Harris
Read More

World Mental Health Day 2018: Raising awareness and combating stigma

The editorial unit
Read More

Seven political personalities you should know about

The editorial unit
Read More

Donald Trump: An enemy of the arts?

The editorial unit
Read More

Trump’s fortune: Where did the money come from?

The editorial unit
Read More
Scroll for more
Tap
  • Popular

  • Latest

  • TOP PICKS

  • Female filmmakers lead nominees for the London Critics’ Circle Film Awards
    Cinema
  • An interview with Ifrah Ismael: Tales from the Front Line and other stories
    Theatre
  • Persian Lessons
    ★★★★★
    Cinema
  • Jeremiah Fraites – Piano Piano
    ★★★★★
    Album review
  • Lonely the Brave – The Hope List
    ★★★★★
    Album review
  • Live Lab at The Yard Theatre: An interview with associate director Cheryl Gallagher
    Theatre
  • We Still Fax at ANTS Theatre Online
    ★★★★★
    Theatre
  • We Ask These Questions of Everybody: An interview with Amble Skuse and Toria Banks
    Theatre
  • Hello Cosmos – Dream Harder
    ★★★★★
    Album review
  • Public Domain at Southwark Playhouse
    ★★★★★
    Theatre
  • We Still Fax at ANTS Theatre Online
    ★★★★★
    Theatre
  • WandaVision: Marvel’s charming sitcom proves an astounding success
    ★★★★★
    Cinema
  • The Queen’s Gambit: A chess story that’s not about the moves but the motives
    ★★★★★
    Cinema
  • Undercover at Morpheus Show Online
    ★★★★★
    Theatre
  • Ten short literary collections to get you back into reading
    Literature
The Upcoming
Pages
  • Contact us
  • Join mailing list
  • Join us
  • Our London food map
  • Our writers
  • Support us
  • What, when, why

Copyright © 2011-2020 FL Media

Salmond claims Scottish economy would benefit from independence
Apple tax row continues as CEO appears before the Senate