Royal Mail Share Discussion Threads

[marcus wanky] 27/1/2019 11:09

Called it noobs.

[edmondj] 23/1/2019 10:03

Fair point!

[lefrene] 23/1/2019 09:50

EdmondJ, small packets travel via the mail system rather than the parcel network. Royal Mail tend to be more reliable because they have their own dedicated trunking system, whereas not all other carriers do, some preffering to use subbies to save money.

[encarter] 23/1/2019 09:34

Bonkers, it's exactly the place.

[bookbroker] 23/1/2019 09:03

Carter, I don’t friggin care how they did at Xmas, as long as I make a few quid here, if you want to be an analyst this ain’t the place!

[encarter] 23/1/2019 08:43

mjones profits can't be 450m. Christmas only accounts for an extra 50m profit. Target is 525m profit so if they cancelled Christmas all together profits would still be 475m.Bookbonker, but out!

[bookbroker] 23/1/2019 08:19

In any case I think the price is reflecting that, letter volumes are declining, but it is more about providing a service as an outsourcer to all the online businesses, this is a growing market, certainly packages!

[bookbroker] 23/1/2019 08:15

Surprised you were not laid off, I know a good number were1

[mjones727] 23/1/2019 08:03

bookboker

I do part time work in my local big mail centre. It has been dead there this xmas.

[bookbroker] 22/1/2019 22:42

Jones, do you work for the Royal Mail, where do you get the figures from, and do you access to this info., otherwise pipe down, you and endarterectomy are like a couple of children haggling over a candy bar, we will see, not sure why ur on the thread if ur so negative!

[mjones727] 22/1/2019 20:25

I expect poor xmas trade by what I see at my local mail centre.

I expect a warning on this years profits to around £450 million

[encarter] 22/1/2019 18:47

Nope. It's all explained in half year results. The problem was that they missed their savings target by £130m so adjusted it to £100m which is what they have to achieve to make £525m profit. £41m of the £100m was achieved in first half with another £41m carried through in to the second half. They only need to make another £18m saving to reach the £525m target. Then the rest depends how Christmas goes.

[mjones727] 22/1/2019 18:38

encarter

The last results were for the half year ending June 2018.

RM have not produced the results for the full year to Dec 2018.

They can still warn on profits.

[bookbroker] 22/1/2019 18:24

Talk about squabbling you two above, did hear about early staff lay-offs, but then they take on hundreds of temps in the preceding months, imagine Parcelforce had a pretty good Xmas, but then the TS. Will reveal all!

[encarter] 22/1/2019 18:20

No they can't. It's all there in last results. They only need to make an extra 20m saving and have the same Christmas as last year to meet their 525m profit target.

[mjones727] 22/1/2019 14:27

yes they can

[encarter] 22/1/2019 14:07

Even with a bad Christmas profits can't fall below £500 so a profit warning is not possible.

[mjones727] 22/1/2019 13:41

encarter

You are simply wrong.

They can warn at any time up until results are released at end March.

"and by all accounts it's been a bumper Christmas with a better than expected January also, due to increased internet returns."

Whose accounts ?

My mail centre was dead. Xmas casuals layed off early-never hapened before. Still dead in Jan.

[encarter] 22/1/2019 13:22

mjones if you knew how to read and understand results you would see that they can't issue another profit warning.

To issue a profit warning profits would have to fall below the predicted £500-£550m which they cannot. It's all explained in the last results The problem was that they will miss their cost avoidance target by £130m which is because of the delayed implementation of cost avoidance projects and so revised the figure to £100m total for full year. They already achieved £41m half year so that is banked meaning they have to achieve £59m in the second half. Most of the £41m comes from a reduction in management headcount and so the benefits will flow through into the second half meaning they only have to find around another £20m which should be easy now that they are aware of the problem. Second half profits are usually around £50m better than first half profits due to Christmas so if they have a really bad Christmas and I mean really bad, profits could reduce to just an extra £40m for Christmas. Management have a target of £525m total profit which they expect to achieve but have said it could be as low as £500m. The £500m is if they could only find £5m of the extra £20m cost avoidance measures and if they had a really bad Christmas and only made £40m profit. The £500m is the worst case scenario which they have already told us so they can't issue another profit warning. However they are making every effort to surpass their cost avoidance target and by all accounts it's been a bumper Christmas with a better than expected January also, due to increased internet returns. £550m+ is most likely imho.

[gaffer73] 22/1/2019 12:33

See this moving back up to the 340p mark from here if the results are decent.

[bookbroker] 22/1/2019 11:31

A chance, but they are investing to shore up the business and make it easier to compete and operate, they should be capitalising on their infrastructure and network to compete effectively with the plethora of couriers. This company is backed up very strong fixed assets, realising more like the Nine Elms location would be a fillip, company has relatively little debt which should appeal, just the dividend is a bit too generous relative to the slow progress being made in improving the business, they do not have to raise it any more, and a cut although unpopular would be sensible!