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Profits rise to £2.4m at Jersey Post

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JERSEY Post has reported a £2.4 million profit before tax for 2016 – a five-year high for the States-owned company and a substantial increase over the previous financial year (£927,000).

Retiring chairman Mike Liston described the results as 'greatly encouraging', ranking well within the postal industry and following years of sacrifice and 'deep cost-cutting' after the collapse of the Island's fulfilment industry in 2011.

The States Treasury will receive a dividend of £722,000, up from £278,000 in 2015.

However, Mr Liston also warned that with the dramatic fall in the use of mail, Jersey Post would become loss-making within three years if no action was taken.

The fall in the value of sterling since the UK Brexit vote had also adversely affected Jersey Post's foreign earnings, he said, with continuing uncertainty about possible changes to trade tariffs and Customs rules.

Turnover increased for the third consecutive year, to £42.3m, up from £37.7m in 2015. Cost of sales also increased, from £29.6m in 2015 to £34.8m last year.

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