Royal Mail blames strike motion for slumping to 12 months lack of greater than £1bn

Royal Mail has blamed strike motion for serving to ship it slumping to a full-year lack of greater than £1 billion.

The group’s proprietor, Worldwide Distributions Providers (IDS), revealed Royal Mail swung to an working lack of £1.04 billion for the 12 months to March 26, in opposition to earnings of £250 million the earlier 12 months.

On an underlying foundation, Royal Mail noticed working losses of £419 million, in opposition to earnings of £416 million the earlier 12 months.

IDS mentioned the losses have been on account of crippling industrial motion, whereas it additionally booked a £539 million writedown on the worth of Royal Mail as a result of impression of strikes and the “present threat backdrop”.

IDS general posted a £748 million annual working loss, in opposition to earnings of £577 million the earlier 12 months, however IDS mentioned it was concentrating on a return to underlying earnings over 2023-24.

The figures come after Royal Mail final month agreed a cope with the Communication Employees Union (CWU).

However it faces additional turbulence with chief govt Simon Thompson not too long ago asserting he’ll step down by the tip of the 12 months and information final week that Royal Mail is being investigated for failing to satisfy its supply targets previously 12 months.