RMCtv : Full Year results 2022-23

[POSTMAN]

This morning, we are presenting our Full Year results for 2022-23 to the market. You can find details of our results here, https://www.internationaldistributionss ... entations/

A reflection of a difficult year

It has been a difficult year for everyone. The results we are sharing today reflect this:
We are reporting an adjusted operating loss of £419 million
Revenue has fallen 13% to £7.4 billion, and in the domestic parcels market we estimate we lost around 4% market share
Domestic parcel volumes were down 22%
Letter volumes have fallen 9% (Addressed letters, excluding elections)

At a Group level, even though GLS made a profit, Royal Mail’s performance means International Distributions Services made a loss overall.

The industrial dispute and the ongoing risk to our business means that we have also had to write down the value of the Royal Mail business by £539 million to £900 million. This is known as an ‘impairment’ and is a requirement under accounting rules. This is on top of the £419m losses reported above.

Given the Group’s overall performance, no dividend will be paid for the year.

We have made progress
Despite this challenging year, we have made progress – delivering our five-point plan to stabilise the business and improving our customer offering.

Some of our achievements over the past year include:
Reaching agreement with the CWU, subject to ballot
Reaching 76% parcel automation by the end of the financial year, which continues to increase
Improving our customer offering with new products and services, and growing Sundays and Parcel Collect
Making good progress on our environmental plan Steps to Zero.

It is not without enormous effort and focus that we have achieved this. Thank you to everyone who worked so hard to make it happen.

An agreement that lays the foundations for future success

The negotiators’ agreement we have reached with the CWU offers a real opportunity to deliver positive change:
It will provide employees with more job security and a pay rise
improve our services and quality for customers and,
it’s good for the environment, allowing us to reduce our reliance on air.

This is the best deal we can offer, and we hope CWU members accept it in the forthcoming ballot.
There is now a clear path towards a more competitive and profitable Royal Mail. But it is critical we deliver both the changes to our business and improved quality of service.

A focus on improving Quality of Service
Despite our making progress in many areas, we have fallen short of the high quality of service standards our customers expect.

This has been one of the hardest years in the company’s history with quality of service damaged by the long running industrial dispute, compounded by high levels of absence which has continued to affect our operational performance.

But the fact remains, it is still below where we – and our customers – want it to be. Restoring our service to the high standards our customers expect has to be our top priority.

Our agreement with CWU includes a number of initiatives designed to help us improve including joint initiatives to reduce sickness absence and increase reliability.

Rebuilding trust with our customers and our people
It’s you, our people, that set Royal Mail apart from our competitors and the trust you have with customers at the doorstep.
As we enter the new financial year, there is reason for us all to be optimistic.
But we must deliver the changes outline in the negotiators’ agreement with CWU, and improve quality at the same time. With that we can grow the business to show a return to Group profitability next year and see Royal Mail itself in profit the year after.
Working together, we can get back to winning.

FAQ on the impairment of Royal Mail
Q. It looks like Royal Mail reported a loss of £(1.044) billion – what is the difference between this and the £(419) million reported? Which number should I believe?
a) £(419)m is the loss from the day-to-day operations of Royal Mail for the year to 26 March, and reflects the impact of industrial action and delays in the transformation of the business.
b) The vast majority of the difference reflects an impairment charge of £539 million in the carrying value of Royal Mail, which has been reduced to £900 million. The impairment reflects the impact on the business of industrial action and delays in the transformation of the business.
c) So, the best way to judge the performance of the business is to focus of the loss of £419 million from operations, rather than the non-cash accounting adjustment to the carrying value of Royal Mail.

[iHateD2Ds]

Cooking the books?

[hans solo]

Yip creative accounting

[hans solo]

So if they are losing so much money how the f**k can they afford to pay Thomson off
Award bonuses to mgmt
It beggars belief
They even admit they will be back in profit next year.
It’s all a con
Get us out the way and their gravy train rolls on
Vote NO

[Flashman_]

This has been one of the hardest years in the company’s history with quality of service damaged by the long running industrial dispute, compounded by high levels of absence which has continued to affect our operational performance.

All our fault then, nothing to do with not replacing/ cutting staff and using vast numbers of more expensive and less efficient agency workers. along with piss poor management in general.
Vote NO!

[Mr Rush]

I wish I had put a bet on now. I knew it was going to be a suspiciously round number (for media digestion) and it has to go up a notch from a million a day.

[zoom in] One beelion dollars!

[claystones]

How can they improve quality of service through there unachievable revisions mail is being left in the offices every day it just cant work the quality of service will never be met unless we get rid of these crap revisions

[mark.cup]

What a joke bigger walks we can't complete more to be added later in the year....

Total disregard for the world's worst agreement and they expect us to keep lining their pockets and be grateful while we work ourselves into an early grave/wheelchair.

Go ____ yourselves I say!

[SpacePhoenix]

What a joke bigger walks we can't complete more to be added later in the year....

Total disregard for the world's worst agreement and they expect us to keep lining their pockets and be grateful while we work ourselves into an early grave/wheelchair.

Go ____ yourselves I say!

RM are already merging walks, we can see from the number of walks on sequencing batches that half suddenly halved without any sign of them being added to other batches. A load of batches got changed at the weekend, I've not flicked through the list of walks for each but my gut feeling is that they merged walks on them batches

[mark.cup]

Yes us minions on delivery are now prepping that work between 3 to 4 frames as they've changed the mech but not done anything regarding our new super sized frames....

It's like a pre delivery warm up walking a couple miles indoors 1st .

[derricksmyth]

Vote NO !!!

[k979aaa]

The very fact is the leadership of this whole company is shocking and it was their own decisions of why industrial action happened and their own lack of vision of what could happen either that or they did not care one jot. Corporate Failure is the charge wonder when they will be investigated and charged!

[A2B]

What a joke bigger walks we can't complete more to be added later in the year....

Total disregard for the world's worst agreement and they expect us to keep lining their pockets and be grateful while we work ourselves into an early grave/wheelchair.

Go ____ yourselves I say!

RM are already merging walks, we can see from the number of walks on sequencing batches that half suddenly halved without any sign of them being added to other batches. A load of batches got changed at the weekend, I've not flicked through the list of walks for each but my gut feeling is that they merged walks on them batches

The frames for the absorption walks have been taken out and the work has been added to our own frames.

We no longer fail the absorption we fail our own walks, oh well

[scoobydo79]

What a joke bigger walks we can't complete more to be added later in the year....

Total disregard for the world's worst agreement and they expect us to keep lining their pockets and be grateful while we work ourselves into an early grave/wheelchair.

Go ____ yourselves I say!

RM are already merging walks, we can see from the number of walks on sequencing batches that half suddenly halved without any sign of them being added to other batches. A load of batches got changed at the weekend, I've not flicked through the list of walks for each but my gut feeling is that they merged walks on them batches

The frames for the absorption walks have been taken out and the work has been added to our own frames.

We no longer fail the absorption we fail our own walks, oh well

That’s ok . If it’s been added at the last loop and you don’t have time bring it back yeah?

[DirtyHarry]

Losing money, me arse!