The chief executive of Royal Mail’s parent company said it was “too easy to blame” delivery companies for delays to postal voting, as it reported a rise in profits in the wake of the general election.
International Distribution Services (IDS), the owner of the postal company which is the subject of a £3.6bn takeover bid by a Czech billionaire, said postal revenue rose 11.2% in the three months to the end of June, blaming the increase in sales on a record rise in the number of postal votes and higher stamp prices.
Postal ballot delivery increased by 50% compared to the December 2019 election, and delivery of mail to candidates increased by 30% compared to before the election.
Royal Mail came under fire before the election after voter anxiety over delayed delivery of ballot papers – some not arriving before holidaymakers departed overseas – and the then Post Minister Kevin Hollinrake claimed the company had “resource issues”.
At the time, the company denied there was a backlog of postal votes and said it was delivering ballot packs from local councils as soon as they arrived in its network.
Martin Seidenberg, group chief executive of IDS, said a review of the processes and procedures surrounding elections was “probably worthwhile”.
He pointed to the surprisingly short time between when former Chancellor Rishi Sunak called the election and when the UK voted, and the time it took to print the materials.
“You can’t just blame one or two people,” Seidenberg said. [things] “… It’s a complex issue. We delivered what we received. It’s too easy to just blame Royal Mail,” he added. “If an independent investigation is carried out, we will support it.”
The delays also increased the likelihood of close results in constituencies where delayed postal ballots are being challenged in the High Court.
Royal Mail said on Thursday that 7.3 million postal votes had been completed. The company delivered 50.8 million ballot papers and 184 million pieces of mail addressed to candidates. However, excluding election mail, mail volumes were down 4%.
“I am proud of and grateful for the incredible efforts postal workers have made to serve our democracy,” Seidenberg said.
The company’s profits were also boosted by increases in stamp prices: in April, the price of a first class stamp rose by 10 pence to £1.35, while a second class stamp rose from 75 pence to 85 pence.
IDS Group revenue rose 8.2% to £3.3bn in the first quarter of the financial year, with Royal Mail’s contribution of £2bn, up 10.6%, plus £1.3bn from international parcel division GLS, up 4.8%.
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The financial update comes as Czech billionaire Daniel Kretinsky is moving ahead with plans to take IDS private, 11 years after Royal Mail became a public company under the coalition government.
Mr Kretinsky, IDS’s largest investor, is facing questions about his long-term intentions for Royal Mail and his dealings with his long-standing business partner.
The low-profile energy tycoon, who also owns shares in West Ham United and Sainsbury’s, told the BBC this week he would stick to his promise to meet the Universal Service Obligation (USO) “for as long as I live”.
On Thursday, the company formed to acquire IDS. Said The company is “fully committed” to its statutory obligations, supports proposals to reduce Royal Mail’s second-class postal deliveries to every other weekday, and has agreed with the government not to sell Royal Mail or GLS for at least three years.
Asked if he trusted Kretinsky, Seidenberg said: “I’ve been in some engagements with him as an investor. [the bid] Sounds real to me.”
“What happened there is very unfortunate because there is a personal tragedy behind it,” Mr Seidenberg said at a politicians’ inquiry into the Horizon IT scandal.
At the time the Horizon scandal began, Post Office was part of the Royal Mail group but was separated in 2012. Mr Seidenberg said many customers were unaware they were now separate companies. “In terms of perception, I’m not happy that there is such a strong connection at the moment. This is something that can only be addressed over time.”
