Guernsey Post to introduce automatic parcel sorting
GUERNSEY POST is planning to redesign its headquarters and install fully automated sorting equipment as part of a multi-million pound restructure.
The parcel automation system is expected to start in July of next year, with a price tag of £1.8m., and offers built-in scanning technology that can process up to 6,000 parcels an hour.
The company intends to move into a short-term loss position while it considers its investment plan, funded from its own reserves.
In the year ending March, the company generated £1.6m. in operating profit, some 40% less than the £2.8m. generated the year before. Expenditure went up by 6%, taking the total costs last year up to £41.2m., compared to £38.7m. in the year ending March 2021.
‘We are really pleased with our performance over the last financial year, a result which is testament to the hard work of our team,’ said chief executive Boley Smillie.
‘However, as has been the case throughout our history, there is no room for complacency.’
Guernsey postal rates increased in April following rate hikes announced by Royal Mail.
‘Our trading position this year is considerably more challenging, which is a direct consequence of Royal Mail worsening our contractual terms by £4m,' he added.
Guernsey Post finance director Steve Sheridan is overseeing the investment plans and is leading on the redesign project.
‘We are excited to invest in this new parcel technology, which will enable Guernsey Post to be more efficient and grow our capacity,’ he said.
Inconvenience to customers is intended to be kept at a minimum and work is expected to be completed in the first half of next year.
‘During the pandemic, [the company] experienced strong growth in parcel volumes to levels that we would not have otherwise anticipated to reach for another three or four years.
‘Our existing forecasts suggest that this growth will continue for the foreseeable future, albeit at a slower rate.
'However, the parcel growth is in stark contrast to the decline of core letter revenue, which continues to fall by more than 10% per year.’
Last year there were about 44.5m. mail items handled – 4.5m. fewer than the year prior, when ‘unprecedented volumes’ were seen as a result of Covid and lockdown.
Outward mail decreased by 15%, again due to the significant demand in the year before during the height of Covid in Guernsey.
However despite the overall decline, inward parcel numbers continued to grow, with an increase of 11%, compared to the year before when inward letters were down 7%.
