Falling letter deliveries for Royal Mail

Royal Mail has said firms remain uncertain over the recent shake-up of personal data rules, as it continued to see a buoyant parcels business offset by falling letter deliveries.

The group reported a 7% fall in letter revenues in the three months to June 24, while UK parcel revenues rose 6%.

The company said this left revenues in the UK division down 1%, while overall group underlying revenues lifted 2% thanks to an 11% surge in turnover at its European parcels business.

Royal Mail reiterated its warning that it could see a steeper-than-expected drop in letter mailings due to the new General Data Protection Regulation (GDPR) changes and added that it is “monitoring any potential impact closely”.

The first-quarter figures come just days ahead of what is expected to be a fraught meeting with shareholders.

Royal Mail is preparing for a showdown with investors at its annual general meeting (AGM) amid anger over a near-£6 million “golden hello” for new boss Rico Back.

Mr Back – the former boss of GLS who took over from Moya Greene as group chief executive last month – was awarded the hefty sum to buy out his contract at GLS in order to replace it with a new one ahead of his appointment as chief executive.

A number of shareholder advisory services groups have urged investors to vote against Royal Mail’s executive pay plans at the AGM tomorrow.

Mr Back is also being paid a £640,000 annual salary, £100,000 more than his predecessor.

Picture: Kris Miller. Royal Mail’s sorting office in Kirriemuir.