Guernsey Post is delighted to announce an operating profit of £2.3m for 2016/17, which equates to an increase of £1.8m on the prior year. Overall the Company has enjoyed a positive trading year the results of which have been further enhanced by the Company's pension reforms and continued improvement in the efficiency of its postal operations.
The Company is paying an ordinary dividend to its Shareholder, the States Trading and Supervisory Board (STSB) of £564k. Furthermore, following a strong investment performance on the Company's balances, held with the States of Guernsey, the Company will pay a further special dividend of £1m to its Shareholder the STSB.
Boley Smillie, Chief Executive of Guernsey Post said: "We are delighted to report an excellent set of results for the year, with a healthy operating profit of £2.3m. Despite the continued decline of core mail volumes the Company has enjoyed a good trading year, particularly from bulk mail revenues, where we have worked hard to facilitate growth from our customer base."
"Our performance over the year is a real credit to all of the Staff at Guernsey Post. Our employees have continued to respond positively, and with good effect, to the challenges within our industry."
Turnover marginally increased during the year to £31.0m which was achieved despite significant declines in core volumes. The decline of traditional mail posted locally for delivery within the Bailiwick fell by more than 6%. Despite strong growth in parcel volumes, mail originating from outside the Bailiwick for delivery locally declined by over 5%.
The Company is expecting difficult trading conditions over the next twelve months as the trend of declining core mail volumes continues. The Company does however expect to make a modest profit in 2017/18 and will continue to work hard to embrace the changes that are taking place within the industry.