Guernsey Post losses of almost £1 million

[TrueBlueTerrier]

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Guernsey Post has announced a loss of almost £900,000 for the financial year ending March 2011.

It follows a profit of £300,000 the year before.

The postal operator says they did make an underlying operational profit of £200,000 during the year.

However, Guernsey Post's Chief Executive, Boley Smillie admits that there will be further job cuts this year in their sorting department - which he says will all be attained through voluntary redundancies and natural wastage.

The main loss is due to a number of exceptional costs including an increase of £600,000 in pension scheme costs, legal costs of £300,000 incurred in fighting the Office of Utility Regulation to retain their reserved area, and voluntary redundancy costs of £200,000.

Guernsey Post's Chief Executive, Boley Smillie said: "We've cut our costs considerably compared to this time last year, we've removed 12 positions from our admin departments over the last year and indeed we're removing positions from our sorting office now.

"So the main reason's been cost-cutting, we've also done some interesting deals with other suppliers like TNT as opposed to Royal Mail so we're being quite innovative in terms of how we bring different products and services."

Guernsey Post's income did also reduce during the year by 3.1% to £44 million. This was partly due to a decrease of 10% in their bulk mail business - the first decline in the market for 20 years.

Boley Smillie admits that there will be further job cuts this year in their sorting department, but says they will all be attained through voluntary redundancies and natural wastage.

Guernsey Post is also forecasting a loss of £300,000 for the financial year to March 2012. They are expecting to lose £200,000 when the reduction in Low Value Consignment Relief happens in November, and are also budgeting for around half to three quarters of a million pounds in voluntary redundancy costs this year.

[Wessex]

Let's guess apart from cutting staff costs how they will make their money . My guess is they will give their uk bound mail to a leech mail company who will then give it to us to deliver .Net result will be they make money and we dont

[Talell]

Let's guess apart from cutting staff costs how they will make their money . My guess is they will give their uk bound mail to a leech mail company who will then give it to us to deliver .Net result will be they make money and we dont

already give it to DHL iirc

[Wessex]

Let's guess apart from cutting staff costs how they will make their money . My guess is they will give their uk bound mail to a leech mail company who will then give it to us to deliver .Net result will be they make money and we dont

already give it to DHL iirc

I didn't realise Tallell, but it would be the logical step rather than paying full whack to RM.