Annual reports

Annual reports

Postcomm's latest annual network report, A year of transition (pdf, 1044KB) was published in November 2008, when the regulator called on the Government and Post Office Ltd to work with all stakeholders to finalise a long term strategy for the network of UK post offices.  A copy of the summary of the report is available here (pdf, 466KB), and the press release is available here.

Among its recommendations, the regulator has identified that the network will need:

  • a long-term strategy to reduce uncertainty, safeguard against further unplanned closures and build confidence in a sustainable post office network
  • to build on its partnerships with local authorities and others to develop a customer-focused mix of products and services
  • to ensure the commitment of subpostmasters to a more enterprising network by providing the right training, business advice and incentives. 
  • more robust cost information in the next inter-business agreement between Post Office Ltd and Royal Mail. 
  • Postcomm also continues to recommend that the Government should consider the separation of Post Office Ltd and Royal Mail. 

Key points from the report:

  • By the end of March 2008, there were 13,567 post offices in the UK, compared to 14,219 at the end of March 2007. 
  • Post Office Ltd is on course to complete its Network Change Programme by the end of 2008.  This programme includes the closure of about 2,500 post offices and, according to Post Office Ltd, savings of £45m per year. 
  • At the end of the closure programme, there will be about 11,500 post offices and 500 ‘outreach’ outlets (alternative locations to post offices) delivering post office services. 
  • Post Office Ltd made a loss of £34m for the year ended March 2008, a figure which includes a £150m annual subsidy from the Government (available until 2010/11). 
  • After the completion of this report, Post Office Ltd announced a profit of £28 million between April and September 2008, a figure which takes into account the subsidy from the Government.  The company plans to return to profitability in 2011 - the end of its 5-year strategic plan. 
  • After the Network Report 2007/08 was completed, the Government announced on 13 November 2008 its decision to provide a new contract for the Post Office Card Account to Post Office Ltd.  We welcome this decision as it ends one of the uncertainties facing subpostmasters and Post Office Ltd, and helps place the network on a more sustainable footing. 

Previous annual reports on the Post Office network: