International Distributions Services Share News (IDS)

(Alliance News) - Regulator Ofcom has fined Royal Mail GBP10.5 million for missing its post delivery targets in the 2023-2024 financial year.

The fine is the second in two years, after the watchdog also gave Royal Mail a GBP5.6 million penalty in November 2023.

Royal Mail said just under three-quarters of first class post was delivered on time during the period, well short of its 93% target.

And 92.7% of second class post was delivered on time, below its 98.5% target, it said.

Ian Strawhorne, Ofcom director of enforcement, said: "With millions of letters arriving late, far too many people aren't getting what they pay for when they buy a stamp.

"Royal Mail's poor service is now eroding public trust in one of the UK's oldest institutions.

"This is the second time we've fined the company since the pandemic.

"Royal Mail has provided an improvement plan, and we're seeing some signs of progress, but it must go further and faster to deliver the service that people expect."

Royal Mail is owned by International Distributions Services PLC. In May, IDS agreed to a GBP3.57 billion takeover offer from a special purpose acquisition vehicle owned by J&T Capital Partners and EP Corporate Group, a subsidiary of EP Investments SARL.

EP Investments is a Luxembourg-based company founded by Czech billionaire Daniel Kretinsky

source: PA

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