An Post has insisted its company balance sheet is “strong, with little debt” following media reports saying Cabinet was briefed this week on a bleak financial situation facing the organisation.
The State’s postal service has said its finances and business strategy was “seriously misrepresented” in parts of the media. As a consequence it published its annual results in advance of a planned announcement later this month.
The 2024 annual statement shows its revenue exceeded €1 billion, representing a 10.6 per cent increase from 2023. Is debt reduced by €5 million to €34 million.
An Post chief executive David McRedmond expressed his fury on Wednesday at an “irresponsible leak” by “a Government Minister” on the finances of the company.
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Patrick O’Donovan, who holds one ordinary share in the company as Minister for Communications, later denied he was the source of the leak and insisted An Post is a “very viable” and “profitable” business.
Reports in two newspapers said Cabinet was told on Tuesday that An Post would have made a substantial loss were it not for significant one-off revenue generated from election-related post last year when general, local and European elections were held.
Mr McRedmond said this is “simply not true”.
“It was an irresponsible leak from a Government Minister, which is wholly unacceptable. These are not the actions of a responsible shareholder. The company is doing really well,” he told RTÉ Radio 1 on Wednesday.
“I’m absolutely furious to read something like that. The company presented its results; the results were presented to Cabinet yesterday. They showed the highest revenue we’ve ever had, over a billion in revenues for the first time.”
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Mr McRedmond acknowledged that An Post received a boost from the elections last year but said that if it had not been the elections “it would be something else”. He also denied a claim that the organisation’s cash reserves fell to below €1 million.
Later, Mr O’Donovan denied he was the source of the leak and he said he agreed with comments made by Mr McRedmond that it was unacceptable.
The Fine Gael Minister said he brought An Post’s accounts to Tuesday’s meeting and would not break “Cabinet confidentialities”.
He added that Mr McRedmond is “absolutely right” and that “An Post has been transformed over the last number of years under his leadership”.
Asked why someone in Cabinet would brief journalists that An Post is in an “awful state”, Mr O’Donovan replied: “Maybe if the person who said that put their name in the paper, you should be asking them.”
In a statement, An Post said it is a “self-sufficient” State company, receives no Government subsidy and “never has”.
The company has reduced its debt “significantly in the past two years” – by €48 million – including the repayment of a Government loan of €30 million from its own resources, it said.
“At December 2024 year end the company had spare cash resources of €38 million and undrawn bank facilities of €30m, ensuring it had working capital facilities for its trading operations.”
Taoiseach Micheál Martin said the leak “wasn’t good for the company”.
“I can understand [Mr Redmond’s] anger and annoyance at what he read today, and I’m not apportioning blame anywhere, I just simply do not know,” he told reporters.
“What happened is wrong ... There was no discussion around An Post being on the brink, the company turned a profit last year and had improved the situation significantly from the previous year.”
Mr Martin said his “main message” was that the Government had “full confidence” in An Post.
“So I was disappointed with the thrust of that story this morning, because I don’t think it reflects the strength of innovation and resilience that is within the company,” he added.
