Isle of Man Post Office reports £2m increase in profit

The Isle of Man Post Office has recorded a £2m increase in its annual profit due to an increase in its parcel business.

The figures was revealed in the organisation’s annual report for 2023-24, which shows it posted a £2.58m profit, up from £540,000 in 2022-23.

Chief executive Simon Kneen said that rise was primarily due to a “double digit increase in inbound parcel volumes”, despite a continued reduction in letter volume.

The ongoing growth of e-commerce as well as the release of capacity restrictions after the mail plane was scrapped contributed to the increase, he said.

There was also “restored retailer confidence” after the “resolution of the long running industrial dispute at Royal Mail”, which partners with the island’s post office for inbound delivery, he said.

While this year’s financial performance was “exceptional”, the organisation’s outlook remained “uncertain” and “could not be seen as a benchmark for a level of sustainable profit”, with e-commerce growth expected to slow, Mr Kneen said.

In its annual plan for the 2024-25 year, the post office outlined a number of steps it would take to adapt to changes in demand for services and income streams.

They included preparations for the stopping of counter services on behalf of the government at its post offices, increasing the number of partners in the UK it carries parcels for, and increasing capacity for trailers at its headquarters following the scrapping of the mail plane.

The organisation also has plans to review its postal pricing structure to simplify tariffs, and its community postal service offering, including our self service facilities.

The document also highlights its key strategic objectives for the next four years, which include the transition of its retail network to allow access to postal only services both online and in person at “convenient” locations, including doorstep collections.

The aims for 2024-28 also include letter price increases to “offset volume decline and inflationary costs while still offering customers value for money”, introducing postage labels with an expiry date, and invalidating older stamps.