Royal Mail Share Discussion Threads

[careful] 17/7/2017 13:14

A profit of £450-500m would seem about right for all concerned to benefit.
The turnover is almost £10bn.
A pension contribution of the proposed £400m seems about the maximum that can be afforded before the goose is killed off.

Any more generous and it would be out of line with nearly every other company scheme and the opposition would crush RMG.
then jobs would be lost, investors would lose, everyone would lose.

[careful] 17/7/2017 13:03

The above post just about sums up the difference between socialism and capitalism.
In capitalism the owners of the business run it for profit and expansion.
The business creates fairly paid secure jobs and pays taxes to support the welfare state.
The owners reap the benefits of their often risky investments in the form of dividends and capital growth.

They must appreciate the efforts of the employee, but they are not 'getting money off the backs of them.'

Shareholders and employees, the government, called stakeholders these days, all benefit from a successful company.

[encarter] 17/7/2017 12:48

The recent announcment was all smoke and mirrors. Its the CWU that have the clout and they will not agree to cuts in pay and conditions. Why should they when shareholders are making money off of the backs of posties? When the company is losing money then they might not expect as much but until then they will fight for their rights.

[lefrene] 17/7/2017 12:28

Essentially they are plagued by a civil service mentality where one can see many things wrong, but the junior managers know only too well that the messenger will get shot! It's the old British problem, no senior manager will actually go to a depot where he is not known, and do a days work to see what happens in the real world.

One see's the same mentality in the NHS, such as yesterday evening I visited a friend in Gloucester hospital, and out the back was a large skip full of perfectly good contemporary beech framed upholstered chairs, to be fair a couple of them did need the fabric of the squab renewing. A private business would have sold them, but no these chairs you and I have paid for are in a skip and very likely there will also be a land-fill charge too! Sadly RM is the same mind set, protocol trumps all other rationality. I'm guessing they will in due course get taken over by such as DHL, quite likely the property portfolio being used as leverage to do so.

[johnyo] 17/7/2017 11:31

Also with Corbyn's Labour Party in a strong position!Mass redundancies might cause parliamentary outrage.

[johnyo] 17/7/2017 11:26

Some good posts !I too want Royal Mail to succeed I worked for RM Group Parcelforce for 6 years & still have few friends who work there.I got my shares free ! Would I have bought RM shares ? I have bought a lot worse shares in the past to be honest.In 2010 parcelforce we started Haemorrhaging customers who had been with parcelforce for years, when myself & friend spoke with the London sales rep his words were we can't compete !! Dpd & MYHermes companies don't or didn't pay decent pension some are self employed,less wages as well as no sick pay & much better productivity. Royal Mail is massively overloaded with management & admin.To turn this company around ! Unions need to be realistic, increased productivity in the workplace & thousands of middle management/admin redundancies.Some postmen are a little deluded & militant in terms of increased productivity it's a tough ask to turn this company around.

[oiht] 17/7/2017 11:03

Having said that, look at the damage they did in the seventies...

[oiht] 17/7/2017 11:02

The unions are feeling emboldened at the moment on the back of Corbynism I guess. No point killing the goose laying the golden eggs though.

[exotic] 17/7/2017 09:58

I'm surprised these fell, I actually thought the news was very encouraging.

"Unite [...] believes that this is the best available deal for Plan members"

[careful] 17/7/2017 09:42

crazy if you go near crypto currency.
that junk not welcome on this thread

[careful] 17/7/2017 09:09

bought a few today.
hoping the unions will be realistic.
Jeremy and his money tree may have given them dreams.

When Vince Cable priced these shares he was accused of selling them off cheaply.
Time will tell.
I would love RMG to succeed, a great 300 year old British institution.
If they get crushed by lightly staffed Amazon it will be a disaster.

[encarter] 17/7/2017 08:25

How can they ever compete with workers terms and conditions as they are? But workers will never accept massive cuts. The only solution is to cover any of their loses with shares.

[muffinhead] 16/7/2017 12:09

Just Eat £4.6 billion
Royal Mail £4 billion

Unions need to decide if they want employees to stay in work or become a moped driver for Just Eat

[oiht] 16/7/2017 10:51

Plenty of bad news built into the price. Looks like 330p offer price, four years ago, wasn't the 'giveaway' that The Left complained of.

[riskvsreward] 16/7/2017 09:30

Placing, with continuous fall of share price and unions demands all they want without any promise of improved productivity, who would pay for the placing? On the same vein, one placing is like one sale of their property which will only solve the short term problem.

DB pension is a problem of yesterday and due to an unprecedented low returns on sovereign bonds worldwide, very few companies nowadays offer the same DB package of the days of decade ago. Why should or could Royal mail be an exception unless the unions wants to bleed the company to death in which case it is like kill the business that feeds them.

The workers and unions must understand that Royal mail needs to have a viable business to pay them. As such it has to be competitive with others in the industry so the management and unions have to be reasonable to strike a balance and compromise that will make it work for both the workers and owners.

[encarter] 16/7/2017 06:49

Yes selling off the family silver smacks of desperation. They could always do a discounted placing.

[johnyo] 15/7/2017 20:12

Not really sure of Royal mail's future ! You can only sell your property/real estate portfolio once !Recent poor broker forecast, they seem unable to enter the premium parcel market ! They have extreme competition from MYHermes & DPD & others and have lost many major customers to these companies.Parcelforce are part of Royal Mail group, they too have lost major contracts, it seems ludicrous to have 2 companies collecting & delivering parcels. Double the depots & vehicles and staff/diesel and management crazy ! Absolutely crazy.Parcelforce have recently been told they can't compete with the competition & are now pricing 2 man heavy deliveries i.e. Washing machines,dishwashers this market is also very competitive with Arrow XL the no1 player ! believe me unlikely they can compete with themThe so called GIG economy is killing them MYHermes driver delivers 110-140 deliveries a day Royal Mail about 40/60 deliveries maybe now they achieve more deliveries & lethargic clueless management

[encarter] 14/7/2017 12:25

Probably but thats not an option. Directors just gave themselves millions of pounds worth of share so why not give posties some to cover the loss they will be taking on pensions?

[yump] 14/7/2017 12:13

I've never understood the contradiction between on the one hand, giving employees shares and all other financial advice saying that you should balance your investments.

Talk about eggs all in one basket. All on the doubtful assumption that having a stake makes employees somehow feel more involved or whatever.

So at Carillion, if the worst happens, employees could lose on their job, their share wealth and their pensions.

Be better to give employees free share options in a FTSE tracker somehow.

[encarter] 14/7/2017 11:44

Its a rubbish deal for posties and will be rejected by the cwu unless they offer free shares as a sweetner.

[cancun tango] 08/7/2017 08:19

https://www.ft.com/content/49d62c72-631d-11e7-91a7-502f7ee26895Royal Mail fall exposes FTSE relegation vulnerability