International Distribution ServicesPrivate▼ Negative
Capitalrelevance
IDS extracted £114m for debt interest, CEO pay tripled, pre-tax profit slumped two-thirds due to bid costs and charges.
Royal Mail's billionaire owner Daniel Křetínský extracted £114m from the postal service's parent company International Distribution Services last year to cover interest payments on debt from his £3.6bn takeover. The payout was made to a company controlled by Křetínský and appears to contradict his promise not to pay dividends unless performance improved, though IDS insisted it was not a dividend but a payment to service debt. Ofcom figures show Royal Mail delivered just 75.7% of letters on time last year, down from 76.5% the prior year, while the company raised first-class stamp prices to £1.80 in April. IDS's annual report also revealed chief executive Martin Seidenberg's pay more than tripled to £6.9m, driven by one-off bonuses linked to the delisting, and pre-tax profit slumped by two thirds to £141m amid £57m in bid costs and £150m in regulatory and legal charges.
IDS extracted £114m for debt interest, CEO pay tripled, pre-tax profit slumped two-thirds due to bid costs and charges.