Image supply, Getty Images
- Author, Thomas Mackintosh
- Role, BBC News
Royal Mail is being investigated by Ofcom after the service did not ship lower than three quarters of first-class publish on time within the final yr.
In its yearly monetary outcomes on Friday, Royal Mail’s dad or mum firm, International Distribution Services (IDS) stated solely 74.5% of first-class mail was delivered inside one working day.
Regulator Ofcom’s guidelines state 93% of first-class mail have to be delivered inside the timeframe, excluding Christmas.
Ofcom stated: “If it does not provide a satisfactory explanation and we determine Royal Mail has failed to comply with its obligations, we will consider whether to impose a financial penalty.”
Royal Mail’s launched figures have been delivered greater than 24 hours late, after markets closed on Friday.
The chief government of IDS stated the monetary outcomes confirmed Royal Mail’s losses narrowed to £348m – from £419m for the yr ending 31 March.
Martin Seidenberg stated: “We have improved quality, won back customers lost during industrial action, controlled costs and delivered Christmas for our customers.”
The outcomes come as IDS waits for a possible buy-out provide from Czech billionaire Daniel Kretinsky.
Business Secretary Kemi Badenoch stated earlier this month that Royal Mail’s common service obligation will must be protected in any sale of the agency.
IDS has beforehand stated Mr Kretinsky agreed to supply a set of “contractual undertakings” to guard key public curiosity components.
It additionally stated the proposal recognised Royal Mail’s standing as a significant a part of nationwide infrastructure.
This would come with commitments to Royal Mail’s plans to maintain six-day-a-week first-class letter deliveries beneath the common service, shield staff’ rights and maintain the Royal Mail model, in addition to its UK headquarters and tax residence.
Mr Kretinsky has till 29 May to make a agency provide.
