Am Post delivers after-tax loss of €39m

An Post recorded an after-tax loss of just under €39.37m for 2012 and an operating loss of €17.48m for the same period.

The company made an operating profit of €2.2m in 2011 and last year was its first trading loss since 2003.

Most of the losses stemmed from the firm’s decision not to recognise a potential tax asset of €42.2m.

Group turnover reached €807.3m last year, which is marginally ahead of the €806.7m recorded the previous year. Most of the increase in revenue came from growth in An Post’s subsidiaries, which posted a combined return of €111m in 2012 compared with €80m the previous year.

The Gift Shop and One Direct were the best performers among the company’s subsidiaries.

Newly appointed chairman (designate), Christoph Müller, said: “The contribution of a high-quality postal service to a modern economy is essential and accepted throughout the world. Declining traditional mail volume has caused many countries to examine the financial model behind the provision of the Universal Service Obligation.”

“I understand that significant change has taken place in An Post over the last number of years and that necessary change programmes are ongoing. My own experience indicates that such change will continue as the business aligns itself with demand and volume in order to remain competitive and meet changing customer demands. Improved flexibility, efficiency, cost effectiveness and innovation will be key elements in the company’s drive to provide superior customer service across all aspects of the business,” he added.

A total of 349 staff left An Post last year, which means that there has been 1,284 redundancies across the group since 2009. This has resulted in annual savings in wage costs of €53.4m. The company has a target of reducing the overall headcount by 2600 by the end of 2016.