New UK data regulations could hit Royal Mail

Royal Mail has warned next week’s major shakeup of personal data rules may hit UK mailings as business uncertainty also takes its toll.

The group said it could see a steeper-thanexpected drop in letter mailings ahead of the incoming General Data Protection Regulation (GDPR) changes.

It now expects the fall in letter volumes to be at the higher end of its 4% to 6% range, and could be even higher in the year ahead.

GDPR rules – designed to give people more control over their personal data – come into effect on May 25 and may also lead to a drop in marketing mail being posted out.

Royal Mail said it had been working closely with industry ahead of GDPR’s introduction and had “outlined how mail can help our customers thrive” in the new environment.

The comments came as outgoing chief executive Moya Greene reported a 37% fall in bottom-line pre-tax profits to £212 million for the year to March 25 due to a pension charge.

However, on an underlying basis, pretax profits rose 1% to £565m, while adjusted operating profits rose 1% to £694m.

Revenues were 2% higher at £10.2 billion and it saw its best growth in parcel volumes in its core UK parcels, international and letters (UKPIL) arm for four years.

Shares in the FTSE 100 group fell 5% on the update.