§ Dr. CableTo ask the Secretary of State for Trade and Industry if she will make a statement on the financial position of the Post Office Group. [88039]
§ Mr. Timms[holding answer 19 December 2002]: Royal Mail Holdings published their interim financial statements on 14 November 2002. These showed that in the six months to 29 September 2002 the company made a post-tax loss of £484 million on turnover of just under £4 billion. The company's accumulated capital and reserves stood at £2,127 million.
The Government believe the necessary changes to remedy this disappointing performance are now under way. These changes include the appointment of new board members, a major restructuring programme under the chairman, Allan Leighton, and making available the £1.8 billion of accumulated reserves, which will back investment required in the mails business and Post Office Ltd.