In its business review published today, Jersey Post has reported another year of strong financial and operational performance throughout 2017. Gross profits have risen by 20% to the highest level since 2009, and as a result, a dividend of £691k will be paid to the States of Jersey this year.
The organisation reports that traditional mail volumes are continuing to decline at around 5% per year, a trend that is not unique to Jersey but one that is being experienced globally. Conversely, parcel traffic is now growing in excess of 5% per annum, which is presenting new opportunity for Jersey Post. This is largely due to a new relationship with Amazon and a number of other large retailers seeking on-island delivery partners; a segment of the local delivery market that is highly competitive and unlicensed. To support this increase in parcel traffic, Jersey Post is continuing to invest in systems and processes in order to remain competitive and to provide improved modern and more sophisticated services, which result in quicker on-island delivery.
Jersey Post is also experiencing success with significant growth in its international business, mainly through the acquisition and development of two UK businesses and strategic investment in two international organisations, helping to create a global network that provides cross-border solutions to both local and international customers. With 30% of 2017 revenues generated internationally, the organisation’s strategy for international growth forecasts for an additional 20% of revenues to be generated from this area in 2018. This growth in international logistics successfully repositions Jersey Post as “a logistics business that delivers mail”. Jersey Post sees significant opportunity to work with the Jersey States on improving States’ efficiency and outcomes in non-core areas, and looks forward to working with them going forward.
Following the implementation of several operational changes, the quality of service results for 2017 have been regularly meeting, and exceeding, all nine of the agreed targets. This is in spite of several significant, unforeseen policy changes made by Royal Mail that had the potential to impact on income, as well as the ability to continue to provide the current range of local services. In addition to improved quality of service results, Jersey Post’s annual customer survey ran for a seventh successive year, with the overall results showing a continued increase in satisfaction regarding the delivery service and post office network.
Alan Merry, Chairman said, “In my first year as Chairman, I am delighted to see continued improvement in results from a strategy that was implemented in 2016. The potential growth for our international business is hugely exciting, as is the development of our digital services which has evolved into a key, profitable business area. These results would not have been achieved without realigning the skills and strengths of the executive team to provide the required level of support and governance to the organisation at an exciting and vital time in its business growth. I am confident that this approach will ensure Jersey Post is in a strong position to tackle, and overcome, the challenges and opportunities that the business will face in the coming years.”
Tim Brown, Chief Executive of Jersey Post commented, “Whilst we are very positive about our future, thanks to the growth in international markets and the potential for e-commerce and digital services locally, we remain focused on the importance of meeting our obligations to the Island. We continue to make significant investments in systems and processes in Jersey to deliver a first class and ultra-modern postal service for islanders. As ever in doing so we continue to rely on the professionalism of our staff.”
The 2017 Business Review is available at www.jerseypost.com/about-us/annual-report/