IDS adjusted operating loss was better than expected
Group revenue slightly misses expectations
Sees GLS profit hit from strategic initiatives
Shares down 3

May 18 Reuters International Distributions Services is targeting a return to profit this financial year after its UK business Royal Mail made a 1 billion pound 1.26 billion loss last year, partly the result of strikes in a longrunning pay dispute.

More than 115,000 postal workers at Royal Mail held a total of 18 days of strikes between September and December last year, demanding higher pay and better working conditions. After months of negotiations, workers union CWU and Royal Mail reached a deal. Staff are yet to vote on that deal.

The economic climate remains challenging, and Royal Mail faces the task of rebuilding business from the damage caused by industrial action, Chairman Keith Williams said in a statement.

Royal Mail posted an operating loss of 1.04 billion pounds on a reported basis, because of impairment charges related to the accounting value of its UK business.

On an adjusted basis, its operating loss came in at 419 million pounds, better than analysts average expectations of 449 million.

International Distributions Services shares were down 3 early on Thursday.

Royal Mail, which is being investigated by Ofcom for failing to meet delivery targets is expected to return to profit only in its 202425 financial year.

Royal Mail39;s CEO Simon Thompson plans to step down later this year, as the…