Post Office continues turnaround as it makes a profit for the second year in a row
The Post Office revealed it was making good progress on its turnaround as it posted a profit for the second year in a row.
The figures
In its full-year results released today, trading profit more than doubled from £13m last year to top £35m while turnover was boosted by £4m to reach £961m.
In retail, its revenue from mail dropped one per cent down to £334m, but its financial services arm enjoyed a five per cent rise, while telecoms revenues also rose 13 per cent to £147m.
Why it's interesting
The results will come as another boost to the Post Office, which is aiming to turn a £100m profit within the next three years.
Back in December last year, the business received a welcome boost when it was revealed the government would hand over £370m funding to protect village community branches.
Decent trading combined with the funding has led the Post Office to open new branches in areas where there is demand, including a 24 hour branch in New Oxford Street.
It said by the end of March this year, it had transformed more than 7,500 of its 11,500 branches.
What Post Office said
Paula Vennells, chief exec, said:
The Post Office is commercial organisation with a strong social purpose. Millions of people and businesses rely on our services, especially as more and more banking customers are turning to our branches to undertake everyday banking services. We have made good progress in our transformation and there is more to do.
We have set ourselves a target of £100m trading profit within the next three years. We need to be able to invest in the future and respond effectively to the challenges which remain.
As an inclusive, diverse and multicultural workforce, we are winning over a new generation of digitally literate customers, whilst ensuring we cater to those who already rely on us, day in, day out. But we need to speed up how we do business, and reduce our costs further, so we can work more efficiently to meet the demands of every single one of our customers– whether they require physical or digital services.