Royal Mail on Thursday identified £350 million ($432.92 million) in cost savings this year to battle inflationary pressures and the slowing British economy after the company's 2021-2022 profit slightly missed market expectations.
The postal company said market expectations for 2022-2023 adjusted operating profit of £303 million for its UK business could be met if it can agree upon a pay deal with its union in line with its current offer, and avoid industrial action.
Royal Mail has been in talks with its largest union, the Communication Workers Union (CWU), over pay increases, offering a total pay increase worth up to 5.5 per cent ― of which 2 per cent is to be paid as soon as a deal is agreed upon.
The CWU rejected the offer and publicly criticised Royal Mail, making preparations for a possible ballot for industrial action.
The relationship between Royal Mail and the CWU has been a tumultuous one in the past, with a two-year clash over pay and operational changes culminating in a settlement in December 2020.
The 500-year-old company had benefited from a boom in parcel demand during the coronavirus pandemic, but rapid inflation and rising costs of labour and fuel are a challenge as it aims to transform itself from a letter operation to a parcel-led business.
"As we emerge from the pandemic, the need to accelerate the transformation of our business ― particularly in delivery ― has become more urgent," chief executive officer Simon Thompson said.
Adjusted operating profit for the year ended March 27 came in at £758 million, slightly below average market expectations of £771 million.
Royal Mail also spoke of margin pressures in the United States at its more cash-generative international operation, GLS, as inflation bites.
UAE currency: the story behind the money in your pockets
In numbers
1,000 tonnes of waste collected daily:
- 800 tonnes converted into alternative fuel
- 150 tonnes to landfill
- 50 tonnes sold as scrap metal
800 tonnes of RDF replaces 500 tonnes of coal
Two conveyor lines treat more than 350,000 tonnes of waste per year
25 staff on site
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Killing of Qassem Suleimani
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
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The specs: 2018 Maserati GranTurismo/GranCabrio
Price, base Dh485,000 (GranTurismo) and Dh575,000 (GranCabrio)
Engine 4.7L V8
Transmission Six-speed automatic
Power 460hp @ 7,000rpm
Torque 520Nm @ 4,750rpm
Fuel economy, combined 14.3L (GranTurismo) and 14.5L (GranCabrio) / 100km
Warlight,
Michael Ondaatje, Knopf
UAE currency: the story behind the money in your pockets
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
The years Ramadan fell in May
