Announcement of €30m support for An Post restructuring
Tuesday November 21st, 2017: An Post welcomes the Government’s decision to extend a loan facility to the Company to allow it to continue the successful transition begun in 2017.
Significant actions have been taken by the Company this year to resolve the financial situation. An Post incurred a loss of €15.6m in 2016 and this time last year, PWC forecast a loss of €61m in 2017 if no action were taken. However decisive initiatives have been undertaken and the Company is on course to breakeven this year.
These actions include:
- The implementation of cost-reflective pricing of mails in line with European averages.
- The re-launch and re-specification of the parcels business with evening and Saturday deliveries and later cut-off times for next-day delivery which has contributed an additional €8m profit this year.
- The reduction in headcount of 316 FTEs by end-December 2017, agreed by the Company and its unions (under a Labour Court recommendation).
- The downsizing of the management team and restructuring of the business into two new distinct businesses: An Post Mails and Parcels and An Post Retail (Post Offices), each with full P&L responsibility and focus on product development and operational excellence.
- Advanced negotiations with the Irish Postmasters Union on the future of the Post Office network.
The continued downward pressure on mail volumes from e-substitution requires the company to accelerate its growth in the parcels sector and drive further initiatives in 2018 which will be supported by the Government’s decision today.
An Post CEO, David McRedmond said: “I am pleased by the news today of Government support for An Post.
“The Company is facing into extraordinary challenges but by working collaboratively with all stakeholders including Government, Unions and Staff, we have already achieved a very significant turnaround in 2017. Much work remains to be done but with continued momentum and Government support, we will see the development of two great companies, An Post Mails & Parcels and An Post Retail in the years ahead.
“An Post is moving in the right direction in becoming the logistics backbone of e-commerce in Ireland while providing new and traditional services for every community in the State,” he concluded.