Post Office records £1.25m rise in annual profit

The Post office recorded a £3.85m annual profit

The Isle of Man Post Office has recorded a £1.25m rise in its profit after making cost efficiencies.

The upturn was revealed in its Statutory Board Plan for 2025-26, which showed an increase from £2.6m in 2023/24 to £3.85m this financial year, with the turnover maintained at £25.1m.

The report said that rise had been driven by operational efficiencies, particularly across payroll, with a new Human Resources system enabling the automation of labour-intensive tasks.

Savings were also made in actuarial pension adjustments, which saw a reduction in the amount of a pension paid early to reflect that it would be for a longer period of time.

Simon Kneen, chief executive of the Isle of man Post Office reported an 11% reduction in the volume of letters, which he said was "in line with expectations."

Zero-emission fleet

However, he said there was "modest growth" in e-commerce parcel numbers, which was "supported by new contracts with UK logistics partners," with parcel services remaining subject to commercial competition.

The financial year also saw the acquisition of 26 electric vehicles taking the total up to 45 out of 118 in a bid to have a zero-emission fleet by 2028.

It now plans to electrify its fleet up to 70 vehicles in the coming financial year, and install solar panels at postal headquarters.

By December, the post office will withdraw MiCard services and by March, vehicle licensing services will be fully digitised, which Mr Kneen said would "reshape counter service delivery" as it impacted 70% of non-postal transactions.

The post office will now look to create a customer strategy, improve the customer counter at the postal headquarters, including self-service options, as well as review the collection frequency and times of postboxes.

Stu Peters, Chairman of IOMPO, said the team was "ready to meet the challenges ahead," adding, "we remain committed to providing trusted, high-quality services for our community."

The document is set to go before Tynwald next month.