Deficit black hole delivers blow to Royal Mail
Royal Mail warns size of pensions deficit could force it into bankruptcy
Royal Mail could be forced into bankruptcy by its £4.25bn pensions deficit,
the company has warned.
Adam Crozier, chief executive of Royal Mail, said: ‘Royal Mail must get a
realistic price control from the regulator in order to invest in the company and
tackle the pension fund deficit’.
The news came after the company announced a 20.5% increase in operating
profits in the six months to September 2005.
Better financial performance from the company’s parcel delivery divisions
contributed to an operating profit of £159m, but the volume of letters declined,
as did profits for the division.