Royal Mail last night came under fresh scrutiny after its owner delayed the publication of its latest accounts as it heads towards a £3.5billion takeover by a Czech billionaire.
In an announcement that took the City by surprise, International Distributions Services (IDS) said that accountants at KPMG needed more time to assess its financial results.
It came as Daniel Kretinsky, the West Ham United co-owner dubbed the ‘Czech Sphinx’, mulls whether to make a formal offer before a deadline next week.
‘What a shambles,’ was the verdict of one investor. IDS, which also owns European parcel business GLS, had told the market it would publish its results for the year ended March 31 at 7am yesterday.
The figures were expected to show the Royal Mail arm lost over £300million.
Deadline: Czech billionaire Daniel Kretinsky (pictured), has until next week to make a formal offer for IDS
But just before 2pm IDS said that the financial statements had been indefinitely delayed.
‘The group’s auditor KPMG has requested additional time to complete the usual standard procedures after their internal reviews were late in the audit timetable, thereby delaying their final audit process,’ IDS said.
Last week the board, led by chairman Keith Williams, said it was ‘minded to accept’ Kretinsky’s 370p per share offer after rejecting an earlier bid.
That shocked the City and Westminster as a deal would see the postal service, established by Henry VIII in 1516, taken into foreign ownership for the first time.
Business Secretary Kemi Badenoch sought commitments from Williams and IDS chief executive Martin Seidenberg that Royal Mail’s universal service obligation (USO) would be protected.
Under the terms of the offer, Kretinsky has promised to keep six-day-a-week first class letter deliveries, protect workers’ rights and the Royal Mail brand, as well as its UK headquarters and tax residence.
But there are fears for second class post’s future and the cost of first class stamps.
The service, privatised in 2013, has been lobbying for reform of the USO.
Royal Mail lost £319million in the first half of the last financial year after falling £1billion into the red the previous year.
Kretinsky, IDS’s largest shareholder, has until 5pm on Wednesday, May 29 to make a formal offer or walk away.
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