Post Office reports trading profit up 40%

Members of Parliament heard on Tuesday that the South African Post Office has made 40% more trading profit in the first six months of this financial year than it did last year.

Chief financial officer Nick Buick told parliament’s portfolio committee on communications that the six months’ net profit for this year was R210-million, 20% above last year’s interim result. Total assets are up by 5% at R7,2-billion, its cash equivalent being R4,97-billion.

The Post Office was presenting its annual report for 2006/07 to the committee.

The report said that last year’s trading profit of R470-million was 85% better than the previous year.

Buick told the committee that the past financial year showed that while postal tariffs increased by only 4,6%, revenue increased by 9%.

“Expenses grew by 5%, which is below inflation,” he said. “It has been an achievement.”

Board chairperson Vuyo Mahlati disclosed that despite the Post Office’s achievements during the year, there were still a number of challenges.

“Behavioural patterns continue to undermine our service,” she said.

“You mean ‘theft’,” said Sue Vos, an Inkatha Freedom Party member of the committee.

Mahlati also said that when they partnered with public service entities, “We are only as good as our partner”.

She explained to the committee that a report that the Home Affairs Department had fired the Post Office was incorrect, and that a correction had been put out by the Minister, Nosiviwe Mapisa Nqakula, the next day.

“One media report said we had been fired in favour of the courier company XPS,” Mahlati said.

“XPS is our wholly owned subsidiary.” ‒ I-Net Bridge