Royal Mail returns a profit for first time since 2022

Emer MoreauBusiness reporter, BBC NewsGetty ImagesRoyal Mail has returned a revenue for the primary time in three years as the corporate makes an attempt to show round its fortunes beneath new proprietor, Czech billionaire Daniel Kretinsky.In its first set of outcomes since being taken over by Mr Kretinsky’s EP Group in April, the corporate reported annual earnings of £12m, excluding voluntary redundancy (VR) prices, in contrast with losses of £336m the earlier yr.Final month, Royal Mail stopped delivering second-class letters on Saturdays in some areas as a cost-cutting measure, and estimates it should take 12 to 18 months to implement the adjustments throughout its community.It stated within the yr to 31 March, parcel volumes elevated 6%, whereas letters declined 4%.The corporate has had a tough few years, shedding cash and market share amid a steep decline in letters being despatched. It has additionally been hit by employees strikes and a steep tremendous for lacking supply targets.The five hundred-year-old agency is making makes an attempt to modernise, shifting its focus to extra worthwhile parcel deliveries.Martin Seidenberg, chief govt of Worldwide Distribution Companies (IDS), which owns Royal Mail, stated the return to revenue marked an “vital milestone within the firm’s turnaround”.”Beneath the possession of EP Group we are going to proceed to put money into the speedy growth of our out of residence community throughout each companies to satisfy the altering wants of our prospects across the globe,” he added.Making an allowance for redundancy prices, Royal Mail made a lack of £8m within the yr to March.Final week, Royal Mail stated it will roll out 3,500 solar-powered postboxes throughout the UK to allow prospects to deposit small parcels.The takeover by Mr Kretinsky, who owns stakes in West Ham United soccer membership and grocery store Sainsbury’s, marked the primary time Royal Mail has been taken into overseas possession.Royal Mail was based by Henry VIII and nonetheless carries the royal cipher on its vans.EP Group has agreed to take care of the one-price-goes-anywhere Common Service Obligation (USO), which at present means it has to ship letters six days per week, Monday to Saturday, and parcels Monday to Friday.However the USO is at present beneath evaluate, with Royal Mail suggesting to regulator Ofcom that lowering second-class deliveries to each different weekday would save as much as £300m a yr and provides the enterprise “a combating probability”.The situations agreed by EP Group embrace maintaining the model identify and Royal Mail’s headquarters and tax residency within the UK for the subsequent 5 years.The federal government retained its so-called “golden share” in Royal Mail, which requires it to approve any main adjustments to the corporate’s possession, HQ location and tax residency.