Guernsey Post has announced it will pay a dividend of £1.3m to its Shareholder, the States of Guernsey, as it recorded an operating profit of £2.8m for the financial year ending 31st March 2021.
Simon Milsted Chairman of Guernsey Post said,
We are extremely pleased with the Company's performance this year. The results need to be viewed in the context of the unique commercial challenges created by the COVID pandemic which, in turn, placed added considerable cost burdens on us.
In his last annual report before retiring from Guernsey Post's Board, Simon Milsted identified the contribution from Guernsey Post staff as being key to the Company's most recent success and said,
As the COVID pandemic unfolded it became clear very quickly just how deep the duty to serve our community runs through our organisation. This was critical at a time when our services have never been more important. As a Board we are extremely grateful to all our staff for their unwavering commitment to the needs of the community and for their exemplary performance throughout such worrying times.
The Company said parcel volumes increased by over 30% throughout the year during which time it deployed a number of contingencies including the establishment of several additional satellite delivery sites across the Island, designed to ensure staff could operate as safely as possible and in line with public health guidelines. Conversely core letter volumes fell by 20% a decline which the Company believes will not be reversed.
Guernsey Post Chief Executive Boley Smillie said,
The acquisition of the freight and logistics company HR Air earlier this year marked a significant milestone in our strategy to offset the impact of the decline in traditional letter volumes which was accelerated by the pandemic. The acquisition has provided an opportunity to broaden our revenue streams to offset this decline and to better address the future with confidence.
Steve Sheridan, Finance Director added,
The outlook for the year ahead is challenging and difficult to forecast as we do not yet know the full effect of the economic changes caused by the pandemic. However, along with plans for further diversification we are clear on the need for investment in our core business including the adoption of parcel sorting equipment.