Royal Mail revenues slip as parent group IDS names new CEO

Royal Mail parent group International Distributions Services has named a new group chief executive, charged with ensuring the postal service meets its ‘full potential’.

Britain’s Royal Mail saw revenues slip 4 per cent year-on-year in the first quarter to £1.8billion amid weaker price-mix and test kit volumes.

IDS told investors on Thursday it is focusing on efficiency initiatives after the 507-year-old postal service made a £1billion loss and faced 18 days of industrial action last year.

More than 115,000 staff walked out for 18 days between September and December was in attempt to get better pay and improve conditions.

The strikes caused chaos in delivery offices across the UK with Royal Mail reporting that it was losing over £1million per day.

However in May of this year, a long-running dispute with the Communication Workers’ Union (CWU) finally came to an end.

The agreement came after what has been a tumultuous couple years for Royal Mail which culminated in CEO Simon Thompson announcing he will step down.

IDS announced on Thursday that it has appointed Martin Seidenberg, CEO of the group’s international parcels network, as its new group CEO.

He will be charged with appointing CEOs for Royal Mail and GLS responsible for operational management of the two subsidiaries ‘in due course’, the group said.

GLS, of which Seidenberg has been the CEO since June 2020, has seen revenue growth of 7.4 per cent over the last year.

Seidenberg said in a statement: ‘It is a privilege to be appointed to lead IDS and ensure that both Royal Mail and GLS reach their full potential. We may have challenges ahead, but through transformation and working together with our people, we can undoubtedly have a bright future.

‘We will remain focused on quality, profitable growth and margin development to thrive in the current challenging macro economic environment.’