Reads as though they are saying you should have paid more for delivery option to insure the item. They also seem to be claiming that they have some for of recorded delivery receipt. Not sure what they are on about, how much was the item worth? Talking some weirdness about £30 - *if* it was sent Royal mail standard parcel rates, it will not have been recorded for delivery, but they will have had a receipt of goods sent at the post office if they requested it - but with that they will still be able to claim up to £100 for goods lost (although I am not sure how long that takes to sort out).
The rest is sort of a lament on - what am I supposed to do about a parcel that goes missing with the Royal mail?
Essentially I think they are alluding to they are not happy as they have posted it and have a receipt of posting, and will be unlikely to help you much further. Not really in the spirit of things, and also the most awful use of language I have ever seen