Revenue has grown for the third successive year and pre-tax profits have reached a five-year high at £2.4m.
Investment in new products and in customer service produced another increase in the annual customer service survey, with 1,200 more people participating than in 2015 and a good or very good ranking for delivery services being achieved in 86% of responses, an improvement on the previous year.
Traditional mail volumes continued to decline but faster than expected, and now accounts for 45% of total revenue, which is down from 60% in 2015. However, this decline was more than offset by strong performance from all other parts of the business including the retail network, international business, digital services, logistics and philatelic.
Jersey Post is entering the ‘growth phase’ of the business plan that was drawn up in the wake of the decline of the Island’s fulfilment industry, when Low Value Consignment Relief was swept away by the UK Government in 2006. Investment in new business streams is beginning to yield positive results and the company is now in a strong position to capitalize on global e-commerce, the benefits of which will be passed on to customers at home.
Alan Merry, Non-Executive Chairman said, “Jersey Post revenues were sliced in half by the collapse of the fulfilment industry. At a time when traditional mail volumes were already in decline, Jersey Post had to make some difficult decisions to survive the immediate fall out, and stabilize the business in preparation for renewed growth. It is only through the dedication and hard work of our staff, shrewd investment in technology and the confidence to broach new markets that we are now in a strong position to enter a new chapter.”
Tim Brown, Chief Executive of Jersey Post commented, “Whilst we are well placed for growth, changes in the postal market outside of Jersey, put the core business at continued significant risk. New business streams for Jersey are from e-commerce and not in letters. This will require changes in how we operate. We will also need to continue to seek new profitable streams of business to enable us to provide a relevant, and non-subsidised, service to the people and businesses of Jersey. Our strategy is not without risk and the new markets we are entering are less predictable because of more competition. However, we are confident in our ability to grow our off-island businesses and deliver a first class and ultra-modern postal service for Jersey.”
The 2016 Business Review is available at www.jerseypost.com/annualreport
Source: Jersey Post