Post Office records reduced net loss for financial year ending March – SABC News

The South African Post Office (SA Post Office) says it recorded a reduced net loss for the financial year ending in March this year.

The loss decreased from R514 million to R71 million. SA Post Office also insists that it is out of intensive care and that the Business Rescue Practitioners, appointed in July 2023, are preparing to exit.

The Post Office was placed under provisional liquidation in February 2023 and later put under business rescue in the hope of recovery. The Business Rescue Practitioners say the entity’s financials have improved.

“The net loss position was R71 million compared to the prior net loss of R514 million, so in terms of the net loss this is one of the lowest net losses if you look at the last five to six years,” says Business Rescue Practitioner Lenny Govender.

Revenue was pegged at R1.5 billion while postal services declined by R18 million to R849 million.

“I appreciate the fact that you mentioned the fact that SA Post Office is still in ICU, we love the fact it is high focus. We as the transitional management team, we’ve developed the concept that SA Post Office is in high care because business rescue was the statutory intervention for a business that is in ICU that’s now gone so for the Board of Directors it does not mean it’s business as normal but it is really business in high care,” says Acting CEO Fathima Gany.

The Post Office has not gotten the thumbs up for the R3.8 billion promised government bailout. However, it received R350 million.

“Following the finalization of the appropriations bill it has then become clear that the initial R700 million which would have gone into the history SABC debt to Sentech was subsequently split into R350 million into Sentech which with the other now made available to the Post Office,” said Communications Minister Solly Malatsi.

“The approved special appropriation that appropriation we also have been able to assist the Post Office with in as far as to ease the going concern. I think further details will be shared by the BR’s because this is also to ensure at least a six-month projection in terms of operation whilst then we look at the issue of the exiting of the BR’s,” says Director General in the Communications Department Nonkqubela Jordan-Dyani.

Members say the Post Office must diversify its revenue generation streams.