Update: An Post has welcomed a €30m government loan, saying it will “allow (An Post) to continue the successful transition begun in 2017”.
An Post had a loss of €15.6m in 2016 and this time last year, PWC forecast a loss of €61m in 2017 if no action were taken. The company said it is on course to break even this year after the introduction of new pricing, the relaunch of its parcel business to include evening and Saturday deliveries a reduction in headcount of 316 by the end of this year.
An Post CEO David McRedmond said: “Much work remains to be done but with continued momentum and Government support, we will see the development of two great companies, An Post Mails & Parcels and An Post Retail in the years ahead.”
The Government is giving An Post a €30m loan in a bid to save rural post offices.
It will be repaid over 5 years with €15m being put directly into the post office network.
The cabinet approved the funding this morning saying the money will ensure the current services remain in place.
Communications Minister Denis Naughten said An Post will have to diversify as a condition for getting the money.
He said: "It is part of a broader reform of the company, it is probably the single biggest restructuring of a state company that has taken place since the foundation of the state.
"The company and the board have now put in place a four year development plan and I am looking forward to seeing that being delivered, new business being brought into the company and an expansion of services."