01-09-2025
Royal Mail significantly improved its financial and operational performance, returning to an adjusted operating profit (excluding voluntary redundancy costs) of £12 million for the first time in three years, following significant losses in 2022-23 and 2023-24. This is in line with guidance and was achieved despite an increasingly competitive and challenging trading environment.
Meanwhile, GLS delivered a resilient performance and solid revenue growth, investing in its out of home network and expanding its international business to support cross-border volumes. It made an adjusted operating profit of £286 million, down £34 million on 2023-24 due to a challenging macroeconomic and regulatory environment in Germany and Italy and foreign exchange movements.
The Group made good progress over the year, with continued transformation - including rapid expansion of out of home options across both Royal Mail and GLS - to provide greater convenience for customers in all markets. Royal Mail increased out of home locations by almost 70% to c.24,000 as at the end of August 2025 and launched its own branded lockers. GLS continued to expand its network to over 110,000 out of home access points, and more than doubled the size of the GLS locker network to over 20,000 by the end of August.3
The Group returned to positive in-year trading cashflow and on 12 June 2025 Standard & Poor confirmed IDS’ investment grade credit rating (BBB- stable outlook).
Martin Seidenberg, Group Chief Executive Officer, said: “It has been a year of change for IDS. Thanks to the hard work of our people and our investment in transformation, Royal Mail returned to profit for the first time in three years, marking an important milestone in the company’s turnaround. With IDS’s acquisition by EP Group complete and Universal Service reform decided now is the time for us to drive the business forward and capitalise on our momentum.
“GLS has further increased automation and capacity at strategic parcel hubs in France and Germany, alongside expanding the European out of home network with over 110,000 pick-up and drop-off points now available to customers. Under the ownership of EP Group we will continue to invest in the rapid expansion of our out of home network across both businesses to meet the changing needs of our customers around the globe".