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(Alliance News) - International Distributions Services PLC on Thursday appointed a new chief financial officer with immediate effect, alongside noting its "best Christmas" performance in four years.
The owner of Royal Mail said it saw a "marked" improvement in performance during the three months that ended December 31, with Royal Mail achieving its "best Christmas operational performance for four years, and met our customer commitment to deliver items posted by the last recommended posting dates in time for Christmas."
Group revenues were up 9.8% during this period from a year earlier, as IDS noted Royal Mail won back customers following last year's industrial action.
It said actions to improve ways of working and implement changes were agreed with the Communication Workers Union in July and are "already helping to drive improvements in quality of service", although it noted that "more remains to be done".
In the nine months that ended December 31, IDS said group revenues have performed well "in a difficult macroeconomic environment", rising 3.8% with greater volumes in both Royal Mail and General Logistics Systems.
However, it noted that this has been offset by increased costs, including pay increases and inflationary pressures.
IDS said it expects a second-half operating profit on an adjusted basis to broadly offset the GBP169 million operating loss in the first half.
As a result, its guidance for the full year ending March 26 remains at about breakeven, excluding voluntary redundancy costs. In financial 2023, operating loss was GBP748 million.
"I would like to thank all my colleagues across Royal Mail and GLS for their extraordinary efforts delivering Christmas for our customers. This has led to a marked improvement in both trading and operational performance for Royal Mail over Christmas and we have continued to win-back customers. We need to build on this momentum," said Chief Executive Officer Martin Seidenberg.
"With Ofcom due to publish options for the future of the Universal Service imminently, now is the time for urgent action. We are doing all we can to transform, but it is simply not sustainable to maintain a delivery network built for 20 billion letters when we are now only delivering seven billion."
Meanwhile, IDS said Michael Snape will take over from Mick Jeavons as CFO. Jeavons stands down from his position on the board with immediate effect but will remain with the company until the end of May following a handover period.
Snape was previously CFO of Boots, No7Beauty Co and International for Walgreens Boots Alliance Inc. Prior to Boots, Snape was International CFO for Tesco PLC, responsible for its operations outside the UK and Ireland.
"Michael brings extensive turnaround experience and excellent financial leadership gained in a number of leading international companies during their transformation. I look forward to working closely with him to ensure that both Royal Mail and GLS reach their full potential," said IDS CEO Seidenberg.
"Mick has been a great colleague and his counsel, knowledge and experience have been invaluable to both myself and the board over the last few years. We thank him for his outstanding contribution through some turbulent times, and wish him every success for the future."
Incoming CFO Snape commented: "I am delighted to be joining IDS at such a pivotal time and am excited by the renewed level of ambition that Martin and the board have for both Royal Mail and GLS. I look forward to helping drive the turnaround of Royal Mail and the continued growth in GLS to deliver for our customers, our colleagues and our shareholders."
Shares in IDS were up 0.8% to 247.80 pence each in London on Thursday morning.
By Greg Rosenvinge, Alliance News senior reporter
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