Nov 17, 2016
Royal Mail targets higher cost savings
The company is now seeking to cost cuts by £600m a year, up from a previous target of £500m. Royal Mail reported a 1% rise in revenue to £4.6bn for the half year to 25 September. The trend of fewer letters being sent through the post continued, with total letter revenues falling by 3%, although parcel revenues grew by 3%. "We delivered UK parcel volume and revenue growth including new contract wins," said Moya Greene, Royal Mail's chief executive. Operating profit before transformation costs for the six month period fell 5% to £320m from £342m. Ms Greene said the Christmas period would be crucial for the full-year results. "This includes the recruitment of over 19,000 temporary staff and opening nine temporary parcel sort centres." Royal Mail competitor UK Mail - which is being bought by Deutsche Post - said half-year revenues had fallen to £230m from £237m a year earlier, although pre-tax profits rose to £5.8m from £2.2m..
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