Royal Mail Delivers Just 75.7% of First Class Mail On Time as UK Freight Transport Sector Shows Strain

Royal Mail delivered just 75.7% of first class letters on time in the year to the end of March, according to the BBC^[1], falling far short of its 93% target. The latest quality-of-service report represents the postal firm's performance under its new private owner, Daniel Kretinsky's EP Group, whose takeover was approved by shareholders at the end of April last year^[1].

Regulatory Response and Company Reaction

Ofcom said it was "very concerned" by the figures, with the BBC reporting that the regulator expects to open a probe into Royal Mail's performance early next week^[1]. The company has already faced significant penalties, with Ofcom fining Royal Mail £21m in October last year for missing targets - the third-largest fine ever imposed by the communications watchdog^[1].

Royal Mail's Chief Operating Officer Jamie Stephenson responded to the figures, stating: "We're putting significant investment into improving reliability and reaching these new delivery targets, but delivering lasting change across a network of this scale takes time"^[1]. The firm said it was investing £500m over the next five years as part of its improvement plan^[1].

Declining Performance Metrics

The annual figures published on Friday show performance worsened compared to the previous year when the company was still listed on the London stock market. That year, 76.9% of first class letters and 92.2% of second class letters were delivered on time^[1]. This year, only 90.2% of second class letters were delivered within three working days against a target of 98.5%^[1].

It has been six years since the institution last met its letter delivery targets for second class post and ten years since it last met its letter delivery targets for first class post^[1]. The company's performance slumped during the Covid-19 pandemic and has failed to fully recover since^[1].

Wider UK Freight Transport Sector Context

Royal Mail's struggles occur within a broader freight transport sector that comprises 73,809 active companies across the UK, according to CompanyPulse data^[2]. The sector shows significant geographic concentration, with London hosting the largest number of companies at 1,058,369, followed by Manchester with 102,634 and Birmingham with 92,850^[2].

The UK company register currently includes 6,000,175 total companies, with 5,556,274 actively trading^[2]. In the past seven days alone, 12,424 new companies have been incorporated across all sectors^[2].

Recent incorporation activity shows volatility in new company formations. On 29 May 2026, 2,210 new companies were registered, while 26 May 2026 saw a peak of 3,300 incorporations^[2]. The data reveals significant variation in daily incorporation rates, with some days seeing as few as 268 new companies registered^[2].

Insolvency Pressures Across UK Business

The broader UK business landscape faces significant insolvency pressures, with 109,662 companies currently in liquidation, 5,018 in administration, 3,575 under voluntary arrangements, and 643 in receivership^[2]. These figures provide context for the operational challenges facing companies across all sectors, including postal and delivery services.

Operational Challenges and Future Targets

In February this year, postal workers told the BBC that some letters had been sitting undelivered for weeks and that they had been told to prioritise parcel delivery instead as it is more profitable^[1]. Royal Mail executives were subsequently called before a parliamentary select committee in March to respond to these claims^[1].

Kretinsky told MPs at the meeting that he was "deeply sorry for any letter that arrives late"^[1]. In response to the allegation that parcels were being prioritised, he stated: "I have never heard any instruction or discussion, and have not participated in any exchange, that would sanction that Royal Mail"^[1].

Looking ahead, Royal Mail said its service was improving and that it was on track to hit new reduced targets of 90% for first class delivery and 95% for second class by this time next year^[1]. These targets represent a reduction from the previous requirements, acknowledging the ongoing operational challenges facing the postal service.

The postal service's performance issues highlight broader questions about infrastructure investment and service standards in essential UK delivery networks. With the regulator preparing to launch an investigation and the company committing to a multi-year improvement plan, the coming months will likely prove critical in determining whether Royal Mail can reverse its decade-long trend of missed delivery targets.