Royal Mail blames strike action for slumping to year loss of more than £ 1bn

[TrueBlueTerrier]

https://www.cityam.com/royal-mail-blame ... -than-1bn/



Royal Mail has blamed strike action for helping send it slumping to a full-year loss of more than £1 billion.

The group’s owner, International Distributions Services (IDS), revealed Royal Mail swung to an operating loss of £1.04 billion for the year to March 26, against earnings of £250 million the previous year.

On an underlying basis, Royal Mail saw operating losses of £419 million, against profits of £416 million the previous year.

IDS said the losses were due to crippling industrial action, while it also booked a £539 million writedown on the value of Royal Mail due to the impact of strikes and the “current risk backdrop”.

IDS overall posted a £748 million annual operating loss, against profits of £577 million the previous year, but IDS said it was targeting a return to underlying earnings over 2023-24.

The figures come after Royal Mail last month agreed a deal with the Communication Workers Union (CWU).

But it faces further turbulence with chief executive Simon Thompson recently announcing he will step down by the end of the year and news last week that Royal Mail is being investigated for failing to meet its delivery targets in the past year.

[mark.cup]

Miss management at its finest!

More work,less staff....

Team it's all been very worthwhile .

[broughts]

There we go again blaming everyone but themselves how can a company that saves £££ by not covering duties day in day out terrible service failing on products they prioritise forget about the rest shameful

[deltaforce]

A double whammy of expensive and now unreliable. You don’t mind paying a bit more for superior service and reliability but all that’s gone or going now. If you want a crap service you may aswell use Evri and pay less for it.

[77SAMPOST77]

This is all down to bad management no two ways about it .

The new CEO has a massive job on his or her hands in repairing the damage done by Thompson .

Royal mail need to focus on quality , People will pay more for a quality service .

We need more staff , reasonable workloads , better equipment , decent and fair managers .

[Dorset Plodder]

https://www.cityam.com/royal-mail-blame ... -than-1bn/


IDS said the losses were due to crippling industrial action, while it also booked a £539 million writedown on the value of Royal Mail due to the impact of strikes and the “current risk backdrop”.

This "writedown" is an accounting term that basically allows companies to make the financial situation look worse than it is .... for their own reasons?

"A writedown is necessary if the Fair Market Value of an asset is less than the carrying value on the books."

"On the balance sheet, the value of the asset is reduced by the difference between the book value and the ammount of cash the business could obtain by disposing of it in the most optimal manner"

So over half of their £1Billion debt is due to writedown. I'm no accountant but this sounds like BS to me as I don't believe they want to sell the business.

Make the situation look worse than it is, get everyone back to work in fear for their jobs and then hey presto start making profit agains .... but not too much incase you've got to share them with the workforce.

[Ad_bee]

https://www.cityam.com/royal-mail-blame ... -than-1bn/


IDS said the losses were due to crippling industrial action, while it also booked a £539 million writedown on the value of Royal Mail due to the impact of strikes and the “current risk backdrop”.

This "writedown" is an accounting term that basically allows companies to make the financial situation look worse than it is .... for their own reasons?

"A writedown is necessary if the Fair Market Value of an asset is less than the carrying value on the books."

"On the balance sheet, the value of the asset is reduced by the difference between the book value and the ammount of cash the business could obtain by disposing of it in the most optimal manner"

So over half of their £1Billion debt is due to writedown. I'm no accountant but this sounds like BS to me as I don't believe they want to sell the business.

Make the situation look worse than it is, get everyone back to work in fear for their jobs and then hey presto start making profit agains .... but not too much incase you've got to share them with the workforce.

Yes.

[ANDREW CROCOMBE]

Can't blame the strikes I'm afraid, lower number covid test kits, paying off management £100 grand good-bye, the parcels are at the same pre covid level - don't believe the lies. The COVID years were a bonus but you gave the money away. Total mismanagement by Thommo and his cronies (all guilty) but at least you've now got the cwu believing the hype. Answer : smaller duties, full staffing levels, and 3 day job shares because people would go for it (our office at least)

[Basildon Bond]

[DirtyHarry]

Oh, yes.
It's all our fault.
Nothing to do with some of the thickest, shitbrained, executives, to ever disgrace a once great service. Oh, no!