Deficit black hole delivers blow to Royal Mail

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.

Related reading

PwC office 2