Royal Mail said it could split as it revealed losses of £ 1 million a day and a name change from its holding company to International Distributions Services.
The postal provider warned on Wednesday that the council would consider separating its two brands, GLS and Royal Mail, if a “significant operational change” was not achieved in its business in the UK.
Royal Mail said the new name was intended to reflect its structure of two separate companies and the “increasing importance” of GLS for the group.
The brand change follows an unfortunate move to change the name of Royal Mail, which dates back to 1516, to Consignia in 2001. The brand was abandoned 16 months later.
The UK postal service said revenue for the three months to June fell 11.5% year-on-year, resulting in an adjusted operating loss of £ 92 million. This was the result of a declining package volume after the coronavirus pandemic and a lack of progress in efficiency provision, he said.
“While GLS delivered solid performance in the first quarter, Royal Mail’s performance was disappointing,” said President Keith Williams.
“The pandemic boom in package volumes reinforced by the delivery of test kits and packages is over,” he added. “Royal Mail is currently losing £ 1 million a day and the efficiency improvements needed for long-term success have stalled.”
However, the UK business is expected to reach equilibrium during the year, as long as it can move forward with cost savings and digital developments.
The Amsterdam-based package grading subsidiary of the company, GLS, recorded a 7.8% increase in revenue and an operating profit of £ 94 million. The group expects GLS to make an operating profit of between 370 and 410 million euros during the year.
Royal Mail faces the biggest strike since 2009 after 115,000 post workers voted in favor of industrial action.
Communications Workers Union (CWU) general secretary Dave Ward said the strike was “a vote of no confidence in the CEO and board of Royal Mail, which should seriously consider its future in our industry “.
“The CWU’s message to Royal Mail’s leadership is loud and clear: not a single postal worker in this country will move until you get serious and give them a decent, adequate salary increase,” he added.
A separate strike by UK postal service managers was thwarted after Royal Mail made new proposals on jobs, pay and conditions.
In May, the company said it had completed a £ 400m return to shareholders that was sparked by an increase in profits following the coronavirus-induced online shopping boom.
However, it has also warned of a growing need for modernization amid declining revenues in the UK.