An Post records after-tax loss of nearly €40m

An Post has recorded an after-tax loss of €39.4 million in 2012, due mainly to its sizeable pension deficit.

A group operating loss of €17.5 million, the first in almost 10 years, also contributed to the decline, along with a continued drop in traditional mail.

More positively, An Post reported strong performances in subsidiary companies including One Direct and the Gift Voucher Shop, resulting in revenue of €111 million, up from €80 million in 2011.

"We continue to deal with declining core mail volumes, increased electronic substitution and significant uncertainty in the general business environment," said An Post chief executive Donal Connell.

“Our experience reflects the ongoing difficulties being faced by our business customers across almost all sectors. The trading environment continues to be most challenging.”

After-tax losses in 2011 amounted to just €347,000.

Accounting charge
An Post's results were hit by the imposition of an FRS 17 accounting charge due to a pension deficit of €285 million.

The company continues to meet trustees and unions since the scheme ceased to be fully funded in 2007 and said a plan was being finalised that “includes changes which will enable the scheme to meet the requirements of the minimum funding standard”.

Mr Connell said its universal service obligation – the Monday to Friday “pick-up and deliver” service – cost an “unsustainable” €60 million in 2012. An Post has also pointed to regulatory delays in securing approval for an increase in the price of the standard stamp as contributing to declining revenue.

Staffing levels continue to be reduced. Numbers were paired back by 349 last year, bringing the reduction to 1,284 since 2009 and helping it towards the target of 2,600 “full-time equivalents” by the end of 2016.

An ongoing “change” programme has delivered savings of €100 million in annualised operating costs. Four sub-post offices were closed last year.