The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Sis thank you for sharing extremely useful information. I agree with you TMS and IMO it's the conservative government not willing to make important decisions and leaving them for the next government like HS2. At least they are taking note of costs and allowing these to be passed on and that may be the overarching theme of future decisions i.e. allowing the USO provider to make a commercial return.
Ofcom are more than happy sitting in their cushy jobs churning out some fines to be self funding. Lets not even mention OFWAT.
Details of service failures attached. These of course form the service failure reports submitted to OFCOM. Quoting a small number of local offices impacted. Some of the failure reports are maybe just rumours from CWU reps. lol. Have a good weekend all.
https://www.royalmail.com/service-update
Perhaps someone more Knowledgeable can explain or give an opinion on the RNS. My basic understanding is only some the notes up for offer have been bought up and the biggest chunk remains outstanding and needs repaying 2024. Which doesn't sound like the best of news.
I've just watched the short DW video on CWU FB. Usual union speak for a minute or two about how IDS is rushing to get into the parcels area and ignoring the declining letters!!
Then gets down to the nitty gritty of saying an economic argument is hurtling towards us and we must have the debate on USO and then says how the current infrastructure is absolutely right but maybe not in its current format. Eh would that mean it needs changing.
DerekR I understand the history and recall the innovation lab and some of the internal work we did and many of the good things we developed and produced. We could debate the use of funds over the last 40 years and as I don't have the numbers I can't say as a fact how much went out the business through the external finance limit, before privatisation and payment of any dividends.
DerekR the payment of dividends in recent years was not the only opportunity to invest. I wonder how much has actually been spent on projects/developments since privatisation and say 10 years before someone has the figures from annual reports.
Equally you know we wasted millions of pounds over the years on lots of activities and let's not forget we were very generous in awarding pay rises and annual bonuses to all grades. Bonuses paid on annual appraisal markings well before any form of leveling or marking curves were in place. Sales incentive schemes, watch and win, workload assessment level weekly bonuses etc etc.
How much did we spend on Rugby and Milton Keynes and Chesterfield training establishments, I spent weeks at planning sessions, conferences etc. Could some of these monies have been spent elsewhere yes for sure IMO.
Why wouldn't we go out to the wider marketplace and buy in expertise as we didn't have the capability to produce everything in house in terms of systems and technology. We have loads of joint working projects and invested millions both before and after privatisation, Siebel, Cap Gemini and I am sure you could name many others. This hasn't stopped because some dividends have been paid.
DR you mention poor leadership and of course there were aspects of that, but is that just since privatisation?
You and I were part of leadership teams, so I am happy to take an element of the blame. I tried to influence decisions and plans in my work areas some were accepted and helped, and some were ignored, and I disagreed but when I took my pay, I was agreeing to deploy what the business deemed best.
I prefer to look forward and be positive rather than reflect on the good old bad old days. It wasnt all sunshine and rainbows.
DerekR thanks for the response. Lots of it sounds like we could have. should have and would have. With your history in the business, you know as well as I do, we have been slow off the mark and have played catch up in lots of areas, particularly the use of technology. Surely closing the gap in key areas is sensible rather than trying to launch into new ventures.
I think many would oppose trying to match the low-cost carrier service of EVRI I am sure we could give an even worse service and cut costs further. Yes we must improve service levels and quality as per DPD. I believe we are trying to do a mix of both despite the historical handcuffs of EFL and USO.
I personally didn't think to return any of the superb bonuses and excellent pay I took out of the business and I wont be considering returning my very generous monthly pension or any past and future dividendsas I am sure the business over the years could have used these funds for many service improvements.
Have you agreed with any of the dividend payments made to date? I try my level best not to get personal on here and of course you are absolutely entitled your opinions, I am personally very grateful for the career and reward I had in/from the business. We all have different experiences from the business and I guess that informs our views.
DerekR some interesting suggestions in there and of course these are all easy and cheap markets to get into. How would all these new ventures be funded?
I am not sure how the new model, hubs and dedicated parcel sites reduces the presence to shipping and delivery customers. I thought the hubs brought us even closer to some and enhanced our opportunity for next day.
I would be happy for the business to be best in class at what it is currently capable of doing and expand in its core areas before launching into. Do you envisage some of our current competitors expanding into all of the areas you have listed?
Despite your reservations about the current and future models for the business is it fair to say you must see a future here or you wouldn't remain invested?
DerekR I was just quoting anything to make the point that the % drop quoted in volumes doesn't directly flow through to revenue and margins and depends on the volume drop on the multitude of streams of traffic. I am surprised at the % price increase on first class and likely to drive even more to 2nd class but perhaps that is deliberate. I am hopeful that the pricing strategy gurus will have all the right data and are making the commercially sensible decisions around letters and parcels including all handling costs. No doubt it would have been a major project consideration in justification of the new hubs/automation. As you will know our sales teams will be focusing on the streams required in line with the business strategy.
Oli it was a straight lift from the OFCOM statement. Not sure of the mix. No doubt some streams slightly up but others massively down. Of course, it will also be the impact on various revenue streams and margins. Do we make more on a 2nd class item or a 1st class DSA item? If the business has decided to focus on parcels, I don't think there can be many who could argue that a reduction of this level on letters requires action.
Many of the comments from frontline delivery staff are suggesting a Mon-Fri letter delivery service. I will be terribly angry and will write to my MP if I don't get my copy of Anglers Monthly delivered on the first Saturday of the month, what on earth would I do if I had to wait until the Monday. Some of the articles could already be out of date. lol
Dowsie I recall seeing that figured quoted somewhere previously in some OFCOM statement. I think any savings would have to factor in QoS recovery costs and hitting any revised targets on new products included in any future framework.
Just read the response from the CWU to the statement not particularly supportive IMO. No recognition of the commercial realties as usual just apportioning blame on the business as they (the business) have allegedly manufactured the 46% drop in letter volumes. Hopefully, they take a different approach when jointly approaching OFCOM or maybe they will continue down there usual path of denial. Thankfully some the members/exmembers can see the changes required.
News tab above confirmation of OFCOM review to be carried out this year with results later in the year. Quoting 46% reduction in letters over last decade. Great to see how quickly they are reacting to changing customer needs lol. As you would expect commerciality and service levels are mentioned.
Broch I've read the full online version. It summarises what we know and shouldn't be particularly surprised by. It does mention the historical dividends but IMO tries to make it sound like these are ongoing despite this year of failures. No mention of the full costs of the strike action which drove customers away in their droves. Of course it doesn't cite sources. I can't see the comment about execs getting a grip or the government will have to intervene, which tory MP/minister said that do you know? is that in your version. Where is the senior labour MP quoted?
I'd like to see where and who made what comments.
Losing 10% of customers and letter volumes dropping isn't a good back drop for growth or job security. I do hope the business can recover and QoS starts to climb.