Post Office records 64% fall in profits

But the organisation believes the figure is 'better than anticipated'

The Isle of Man Post Office has recorded a 64.6 percent drop in profit. 

The annual accounts for the period ending March 2023 have been published. 

Turnover increased by £783,309 and stands at £24.23 million.

According to IOMPO's annual report the chief executive believes the increased turnover is due to a '£2.7 million increase in gross foreign exchange sales', given travelling resumed post pandemic.

Meanwhile the mail division is reporting an 11 percent cut to turnover.

Letter volumes are reportedly down by 13 percent which the organisation describes as 'inherent'.

Parcel volumes were also down by 18 percent.

The cost-of-living crisis is said to have impacted consumer behaviours and further uncertainty from sustained industrial action by Royal Mail workers during the Christmas period.

Gross profit fell by just over £1 million in comparison to 2022's figure of £1.51 million.

Self-employed couriers are being identified as an area of the industry that 'continues to negatively impact' the postal service as it believes it's 'unable to compete on a level footing'.

IOMPO blames the erosion of its market share due to these 'gig economies' as a risk to its ability to continue delivering 'universal' services whilst retaining employment standards and remaining in compliance with statutory laws.

Thirteen members of staff are paid between £50,000 and £74,999 while four are paid between £75,000 and £124,999.

Only one staff member is paid as much as £149,999 per annum.

The annual report sets out 'key achievements' over the last 12 months which include implementation of the first parcel automation machine alongside rationalising post box collections in line with reduced demand.

"Our environmental actions and aspirations remain a top priority."

The postal service promises to reduce carbon emissions across its vehicle fleet, on ferries and aircraft.

The organisation also hoped to increase renewable energy by installing solar panels at its headquarters with funding from the Climate Change Transformation Board.

However, Chair of the Post Office MHK Stu Peters said: "The board were disappointed that their application [to install solar panels] was unsuccessful given the demonstrable benefits case appeared to align well to the Island's 'net zero' objectives.

"That said the board have agreed to proceed with this from internal resources and will be launching a tender as they are committed to an environmentally sustainable future."