AsthesoleprovideroftheTitle:UniversalServiceDescription:PostalproductsandassociatedminimumservicestandardsthatmustbeavailabletoalladdressesintheUK.UniversalServiceintheUK,RoyalMailGroupdeliversasix-days-a-week,one-price-goes-anywherepostalservicetomorethan29millionaddressesacrosstheUK.Weareavitallinkconnectingcommunities,businessesandcustomers.In2012-13,wecollectedanddeliveredmorethanonebillionparcelsand14billionlettersacrossthecountry.
On15thOctober2013RoyalMailwaslistedontheLondonStockExchangeandinDecember2013becameaFTSE100company.ThismarkedasignificantstepinthehistoryofRoyalMail.
DeliveringincreasingnumbersofparcelsthroughourcommonUKnetworkandcapturingthebenefitsofthenewregulatoryregimewillhelpustomitigatetheimpactsofstructuraldeclineinthelettersmarket.Theamountofmailsentonadailybasisdecreasedfromaround63millionitemsin2011-12to58millionitemsin2012-13.
Achievingourstrategicpriorities,togetherwithbecomingamorecustomer-focusedcompany,underpinsourvisiontoberecognisedasthebestdeliverycompanyintheUKandacrossEurope.
Wearemakinggoodprogress.However,moreremainstobedonetoensurewecancompletethetransformationofourbusinessfromonethatpredominantlyhandlesletters,toonethathandlesanincreasingnumberofparcels.
Akeycomponentofeconomicandsocialinfrastructure
TheGroupisakeycomponentoftheUK'seconomicandsocialinfrastructure,providingservicestoprivateindividuals,companies,andcommunities.Forthe2012-13financialyear,CebrestimatedthatwemadetheseventhlargestcontributiontotheUKeconomyoutofallUKcorporations.Wehadatotaleconomicimpactofmorethan£9.6billion,madeupofdirectandindirectcontributionstothewidereconomy.
GeneralLogisticsSystems(GLS)istheGroup'sEuropeanparcelbusinessandisfocusedonthedeferredparcelmarket.TheGLSnetworkisoneofthelargestground-baseddeferredparceldeliverynetworksinEurope.Itcovers37Europeancountriesandnationstateswithservicesprovidedthroughacombinationofwholly-ownedmembersoftheGLSGroup,networkandservicepartnersoftheGLSGroup,franchiseesandagents.
RoyalMailGroupisnumberoneintheUKparcelsmarket.In2012-13ithadone-thirdofthemarketshareinrevenuetermsandmorethan50percentofthemarketshareforparcelvolumes.ExpressparcelsaredeliveredthroughtheParcelforceWorldwideUKnetwork,whichsupportsthedelivery,primarily,ofexpressandlargerparcelsthroughouttheUK,Europeandtherestoftheworld.In2012-13,ParcelforceWorldwidehandledapproximately71millionitemsintheUKusinga"hubandspoke"model.Thiscomprisesthenetwork'snationalhubinCoventryand54depotslocatedaroundtheUK.
Inaddition,wealsodesignandproducetheUK'sstampsandotherphilatelicproducts.
Groupstructure
RoyalMailGroupLimitedistheprincipaltradingentityofRoyalMailplc.
RoyalMailGroupLimitedincludesUKParcels,International&Letters(UKPIL)whichcomprisestheGroup'sUKandinternationalparcelsandlettersdeliverybusinessesoperatingunderthe"RoyalMail"and"ParcelforceWorldwide"brands.
ThroughtheRoyalMailCoreNetwork,theGroupdeliversa"onepricegoesanywhere"serviceonarangeofparcelsandlettersproductstomorethan29millionaddressesintheUK,sixdaysaweek(excludingUKpublicholidays).
ParcelforceWorldwideoperatesaseparateUKnetworkwhichcollectsanddeliversexpressparcels.
TheGroupalsohassignificantoperationsincontinentalEuropethroughitsGeneralLogisticsSystems(GLS)business
GLSisoneofEurope'slargestground-baseddeferredparcelsdeliverynetworks.
GLShandled380millionparcelsin2012-13.