Jersey Post Annual Report and Accounts | 2012 - States Assembly

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Jersey Post Annual Report and Accounts | 2012 With little possibility of raising equity or long-term debt, we will rely on accumulated reserves for seed funding of any new ventures, but your Board recognises the inefficiency of holding cash reserves significantly surplus to known requirements. Accordingly it decided to return £4.5 million to the shareholder by way of a special dividend. Of this, £3 million had been paid by the year end and the balance will be paid in 2013. I am also pleased to propose a modest increase in the ordinary dividend by 2% to £382,000. The directors believe that dividend cover at 3 times is appropriate given the volatility of trading conditions. At the year end the company still had cash and other short term investments totalling £13.7 million; so subject to our concerns about the deficit in our sub-fund of PECRS which stood at £5.4 million at the year end and the unpredictable risks it presents, the company remains strong. The Board welcomes CICRA’s recent proposal to reduce the level of regulation of the postal sector. We believe that considerable scope exists to recalibrate the resource expended in postal regulation given the relatively minor economic impact of consumer spending on postal services and the disappearance of the only sizeable contestable market following the removal of LVCR. The CICRA will continue to regulate our quality of service and ensure the Universal Service Obligation remains sustainable in its present form for as long as possible. Whilst the company is still dominant in some of its markets this privilege comes with the burden of an obligation to provide public services of little or no commercial interest to other postal operators. The existence of a healthy range of competing providers and technologies is a powerful motivator in our continuous drive for efficiency and value for money. revenue down 32% after LVCR withdrawal outward mail volumes 17% FALL inbound packets & parcels 28 % INCREASE 10
Chairman’s Statement The Board welcomes CICRA’s recent proposal to reduce the level of regulation of the postal sector. Delivering for you 11
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Jersey Post Annual Report and Accounts | 2012 - States Assembly

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