On 15th October 2013 Royal Mail was listed on the London Stock Exchange. This marks a significant step in the history of the Royal Mail, and ensures the sustainability of the Universal Service by putting our Company on a sound financial footing. Our strategy is to capitalise on our strength in delivery to grow our presence in the dynamic parcels market, thereby maintaining a financially viable Universal Service.
Delivering increasing numbers of parcels through our combined UK network and capturing the benefits of the new regulatory regime will help us to mitigate the financial impacts of structural decline in the letters market. Addressed volumes have fallen from around 63 million items a day in 2011-12 to 58 million items in 2012-13.
Achieving our strategic priorities, together with becoming a more customer-focused company, underpins our vision to be the most successful delivery company in the UK. Driving sustainable, profitable growth will allow us to obtain ongoing access to external capital, build a resilient business and continue to provide as many good quality jobs as we can for our people.
We are making good progress. However, more remains to be done to ensure we can complete the transformation of our business from one that predominantly handles letters, to one that handles an increasing number of parcels.
A key component of economic and social infrastructure
The Group is a key component of the UK’s economic and social infrastructure, providing services to private individuals, companies, and communities. In 2012 we contributed £5.3 billion to the UK economy through wages and other related people costs, and a further £2.5 billion in purchasing goods and services.
General Logistics Systems (GLS) is one of the largest ground-based deferred parcel delivery service providers in Europe. It is a pan-European business providing reliable parcel and express services as well as logistics solutions. The GLS network covers 37 countries through wholly owned and partner companies, is globally connected through contractual agreements and acts as the Group’s gateway to Europe, opening up new opportunities.
Royal Mail Group is also a leading UK provider of express parcels through Parcelforce Worldwide. The company has approximately 4,500 employees and operates across a network of 52 depots throughout the UK and manages international traffic through one of two central hubs based in Coventry.
In addition, we also design and produce the UK’s stamps and philatelic products.
Royal Mail Group Limited is the principal trading entity of Royal Mail plc
Royal Mail Group Limited includes UK Parcels, International and Letters (“UKPIL”) which comprises the Group’s UK and international parcels and letters delivery businesses operating under the “Royal Mail” and “Parcelforce Worldwide” brands.
Through the Royal Mail Core Network, the Group delivers a “one price goes anywhere” service on a range of parcels and letters products to more than 29 million addresses in the UK, six days a week (excluding UK public holidays).
Parcelforce Worldwide operates a separate UK network which collects and delivers express parcels.
The Group also has significant operations in continental Europe through its General Logistics Systems ("GLS") business.
GLS is one of Continental Europe’s largest ground-based deferred parcels delivery businesses handling 380 million parcels in FYE 2013 with a focus on deliveries within the B2B (business to business) segment, but with an increasing presence in the B2C (business to consumer) segment.
GLS operates in some 37 countries and nation states through a combination of wholly-owned subsidiaries, franchisees and service partners (including Parcelforce Worldwide in the UK)