GUERNSEY POST has reported savings of almost £1m. following reorganisation and a 10% cut in the workforce.

In February last year, the company held a ‘crunch’ meeting to discuss how to save £5m. over a three-year period.

A year into the business efficiency programme, chief executive Gordon Steele (pictured) said the company had saved £900,000.

‘We have not only streamlined our business but have beaten our regulatory targets and handled a significant increase in the volume of mail.

‘The programme has achieved much more than would have been possible through the plan recommended by the regulator, which was narrower in scope and focused on cutting overtime,’ he said.

Mr Steele said reorganisation had extended from the executive team to postal rounds. That included shedding 26 jobs through voluntary redundancy, non-replacement and early retirement.

‘The improvements have allowed us to make profits and this year we paid over £1m. to the States in dividend, TRP and tax and we anticipate paying further sums to the States next year as a result of the efficiencies we have put in place.

‘It also means we have kept the increase in stamp prices below what they would have been had Royal Mail’s ‘