The last few months have been busy for Royal Mail. In late April, Czech businessman Daniel Kretinsky’s EP Group acquired its parent company, International Distribution Services, for £3.6 billion – a value well below the May 2021 peak of £6 billion.
Then, regulator Ofcom announced that from July 28 there would be changes to a regulatory framework called the universal service obligation (USO). This effectively determines delivery standards for Royal Mail – and has been seen as a major barrier to its profitability. The company, which was privatised in 2013, made an adjusted operating loss of £348 million in 2023-24 (and £419 million in 2022-23).
