Guernsey Post is to pay a dividend of £1.3m. to States
GUERNSEY POST recorded an operating profit of £2.8m. in 2020 and has announced that it will pay a dividend of £1.3m. to its shareholder, the States of Guernsey.
While letters continue to decline, down 20% on the previous year, parcels, partly influenced by lockdown shopping, leapt 30% year-on-year.
Despite lockdown, its annual turnover for the year was up £9.7m. on 2019 to £41.5m., with strong performance in all business areas, particularly bulk customer business and from parcel revenues. It spent £38.7m., which was a rise of £8.3m.
To overcome two Covid lockdowns in a trading year to 31 March 2021, the company took measures including setting up satellite delivery sites around the island, to enable staff to operate as safely as possible and in line with public health guidelines.
Finance director Steve Sheridan said the company was pleased that it was able to pay such a good dividend.
‘Over the last 10 years we’re extremely proud to have been able to return more than £22m. to our shareholder,’ he said.
With another 20% decline in letter volume, the company said it did not expect this to ever recover. ‘While there’s been a move towards digitisation, it been faster than we expected,’ said Mr Sheridan.
Chief executive Boley Smillie said the acquisition of the freight and logistics company HR Air in early 2021 had helped offset the decline in letters.
‘The acquisition has provided an opportunity to broaden our revenue streams to offset this decline and to better address the future with confidence,’ he said.
Chairman Simon Milsted, in his last report before stepping down, paid tribute to the staff.
‘I have been humbled to witness how deep the duty to serve our community runs through the organisation at a time when our services have never been more important to the people of the Bailiwick,’ he said.
Among the company’s plans for the future is the purchase of parcel-sorting equipment.
Mr Sheridan said that even though the outlook for the coming year was challenging and hard to forecast, the company was clear on the need for investment in its core business.
n Guernsey Post’s success contrasts with the £437,000 loss made by its opposite number in Jersey, which was also attributed to the declining use of letters, the pandemic and Brexit.
This was the second year running that the company reported a loss, after losing £933,000 in 2019.
