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(Alliance News) - International Distributions Services PLC on Thursday named Martin Seidenberg as its new chief executive officer, and separately said that Royal Mail revenue has fallen over the first quarter, as expected.
Under the revised structure, Seidenberg will lead the London-based letter and package delivery company and set its strategic direction. He will be appointing CEOs for Royal Mail and GLS, who will be responsible for operational management of the two subsidiaries in due course.
Seidenberg will take up the post in August.
Seidenberg joined GLS in 2015 as CEO of GLS Germany and was appointed as CEO of GLS in June 2020. He has been a member of the IDS Board since April 2021.
Prior to joining the group, Seidenberg spent 15 years at Deutsche Post DHL where he held a variety of logistics, strategy and CEO roles internationally.
Chair Keith Williams said: "Under Martin's leadership GLS has grown to nearly 40% of group revenue and it continuously delivered significant profit to the group. He has transformed GLS into a state-of-the-art international parcel logistics network serving consumers and businesses across Europe and North America. With Royal Mail entering a new phase of its transformation after the ballot on the agreement with the [Communication Workers Union], and GLS on a positive trajectory, we can move both companies forward under Martin's leadership to deliver change, growth and value across the group."
Separately, IDS said that Royal Mail total revenue has fallen 4.0% in the first quarter, as expected. Domestic parcel volumes were broadly as expected, with slightly weaker revenue performance attributed to price mix and lower test kit volumes.
GLS revenue, meanwhile, grew 7.4% year-on-year, with volume growth of 4% slightly ahead of expectations, offsetting impact of lower fuel surcharges and weaker freight revenues.
The firm said it remains focused on improving quality of service including targeted recruitment, and effective management of sick absence and deployment of a "nerve centre" to support the most impacted units.
However, addressed letter volume over the quarter was more robust than expected, which combined with pricing actions led to stronger revenue performance, particularly in business mail.
During the quarter, the Royal Mail-owner also saw members of the Communication Workers Union back a deal on pay and changes to working practices. 76% of eligible CWU members voted in favour of the three-year agreement, bringing months of industrial action and disruption to UK postal services to an end.
IDS said the agreement provides Royal Mail with a platform for the next phase of stabilising the business whilst continuing to drive efficiencies and change.
Looking ahead, IDS said that its outlook remains unchanged, and that it is still targeting group adjusted operating profit in 2023 to 2024.
International Distributions shares were trading 3.6% higher at 276.30 pence each in London on Thursday morning.
By Holly Beveridge and Sophie Rose, Alliance News reporters
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