Royal Mail announces profit increase but all is not well
The Royal Mail has today announced half-year figures showing a rise of £7 million to profits of £184 million for the six month period. This comes despite the fact that revenue for the overall business has fallen by 1.5% and competition, as well as industrial action, is set to hit future income and future profitability. But there is more beneath the surface which needs to be addressed!
It was also revealed that the Royal Mail pension scheme now has a deficit which is approaching £10 billion and needs to be addressed as soon as possible. More alarming is the fact that the deficit would appear to have increased from £3.4 billion at the last valuation date to an expected £10 billion in January 2010 with very little in the way of action taken to rectify the situation. The company is haemorrhaging cash and the ongoing clashes with the unions are certain to have an impact on the long-term profitability of the operation and its image within the marketplace.
There needs to be a total revamp of the Royal Mail as soon as possible, something which could see the group split up with the more profitable parts potentially sold on or floated on the stock market to raise money for the government. The future of the Royal Mail is still very much in the balance.
Share this..
Related stories
UK financial sector drags the FTSE 100 to six-year low
The ongoing concern about the UK economy and the worldwide economy, together with the drastic quantitative easing policy introduced by the UK authorities today, has caused turmoil across the financial sector. Insurance companies and UK banks have been under pressure with Barclays Bank alone falling by over 20% in today's dealing session. So why have the banks and insurance companies been hit?
Read More
One million people at risk of house repossessions
04/09/2015 New research from Citizens Advice has shown that almost 1 million people are at risk of having their homes repossessed because they have no way of paying off their interest-only mortgage. The research from the national debt charity shows that 934,000 people who have interest only mortgage have no plan to pay it off when the term ends. This means many people would have to sell the...
Read MoreCredit card rejection numbers continue to rise
It is been revealed that 48% of all credit card applications in the UK were turned down in 2009 against 42% in 2008. These figures compare unfavourably to the standard rejection rate which was running at around 30% prior to the credit crunch. So why are credit card companies rejecting more and more customers? It is becoming obvious that credit card companies in the UK are becoming ever more con...
Read MoreBudget Headlines : Digital investment to increase - no figure announced
Digital investment to increase - no figure announced...
Read MoreDow Jones lifted by retail sales
The main share index in the United States climbed to another record high yesterday after news of strong retail sales reassured investors.On Wall Street the Dow Jones industrial average closed up more than two per cent, with the stock market also cheered by developments in the mining sector.After jumping 283.86 points the index finished on a record 13,861.73 points its strongest daily gain s...
Read More