An Post receives extended loan facility from Irish government to help turnaround

An Post has received an extended loan facility of €30m to help continue its re-structuring. The postal operator made a loss of €15.6m in 2016 and a PWC forecast suggested a loss of €61m in 2017 if no action were taken.

Recent actions taken included:

  • 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.

An Post CEO, David McRedmond, said: “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. 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.”

Source: An Post