Guernsey Post reports £1m. loss in ‘challenging’ landscape

While it again reported a loss for the trading year to the end of March 2024, the figures improved from a loss of £2.75m. down to £1.09m.

It reported a turnover of £38.03m, a 1.87% increase from the previous year, with an operating loss exactly halved from £2.26m. to £1.13m.

Guernsey Post chairman Rick Denton said the last financial year had showcased the company’s resilience and adaptability, as it contended with a ‘challenging’ postal landscape and escalating cost pressures driven by wider macroeconomic factors.

He said the redesign and extension of the company’s headquarters at Envoy House, including the installation of a new parcel sorting machine, had enhanced operations and increased processing speeds, allowing staff to handle higher volumes of parcels more efficiently.

‘This investment has allowed us to create much-needed capacity in our delivery operation, equipping us better than ever to manage increasing parcel volumes without compromising service quality and customer delivery standards.’

Despite a £400,000 rise in mail transport costs, the company managed to open a new site in Portsmouth, which has become the main hub for its new myUKaddress service.

While acknowledging that the postal industry continued to face many challenges, most notably the ongoing decline of traditional mail volumes, Mr Denton said this presented opportunities for growth.

He said Guernsey Post was ‘well-positioned’ to capitalise on the growth of e-commerce and the subsequent ‘robust’ demand for parcel delivery services, adding that the company’s strategic focus was centred on unlocking and expanding parcel growth opportunities.

‘As we embark on the new financial year, we are confident that our strategic direction, coupled with our commitment to service excellence, will enable us to achieve our goals and deliver long-term value for all our stakeholders.’