Royal Mail Share Discussion Threads

[muffinhead] 29/1/2019 09:53

letters workforce will need more prunning

20,000 should do it

[careful] 29/1/2019 09:41

only older people send Christmas cards these days.
used to be, 'post early for christmas'.

the 8% number does not surprise me.

[datait] 29/1/2019 09:41

Royal Mail pensions will be fleeced next I would expect.

[mjones727] 29/1/2019 09:37

Parcel margin in freefall.

Letters doomed

[gaffer73] 29/1/2019 09:27

Yeah letters dropped 8% and parcels went up 10%.

[mjones727] 29/1/2019 09:24

Royal Mail warns over worsening decline in letter mailings
PA
Jan 29th 2019 3:01AM

Royal Mail has delivered yet more gloom over full-year profits and warned of a worse-than-expected fall in addressed letter mailings, as business uncertainty takes its toll.

The group, which sent shares plummeting last October after alerting over profits, said addressed letter mailings tumbled 8% over the nine months to December 23 despite its busy Christmas period.

It said letter volumes are set to fall by 7% to 8% over the full year and will be worse than forecast for 2019-20, with Brexit impacting business confidence adding to the ongoing trend for “e-substitution”.

The group also trimmed the top end of its forecasts for annual earnings to between £500 million and £530 million against the previous forecast of £500 million to £550 million.

This marks a hefty fall on the £694 million reported last year.

Shares fell as much as 20% last October when Royal Mail first revealed the extent of the expected profits fall.

In its nine-month trading update, Royal Mail reported an overall 2% rise in underlying revenues as an 8% rise in sales at its General Logistics Systems (GLS) division offset a 1% fall in its UK parcels and letters arm.

Rico Back, group chief executive of Royal Mail, said: “Due to our letters performance to date, we expect addressed letter volume declines, excluding elections, to be in the range of 7% to 8% for 2018-19.

“While the rate of e-substitution remains in line with our expectations, business uncertainty is impacting letter volumes.

“As a result, addressed letter volume declines, excluding elections, are likely to be outside our forecast medium-term range next year.”

But otherwise he said the group enjoyed a “busy Christmas season”, handling 164 million parcels in December alone, up 10% compared with last year.

[careful] 29/1/2019 09:21

a 60% fall in under 12 months is staggering for a share such as this.
630p a few months ago.

Will RMG be able to rightsize the overheads with the unions in the way.
they should be able to make this work with a £10bn turnover.

[mjones727] 29/1/2019 09:17

Fair value is 150p

[gaffer73] 29/1/2019 08:31

It does seem strange for an update which was within the estimate. Perhaps people were expecting more??

[careful] 29/1/2019 08:27

good opportunity buying.

I used to trade cfd's either short or long.
Always paid to be margined out at a selected level.

I was often strangely spiked out by a sudden strange movement.
This morning anyone long ahead of update would have been margined out.
House wins...market manipulation?

[gaffer73] 29/1/2019 08:22

Yeah very strange, gave me the opportunity to grab some at 250p though.

[careful] 29/1/2019 08:20

a strange reaction.
update seemed ok

[gaffer73] 29/1/2019 08:07

What warning?

[mjones727] 29/1/2019 08:07

encarter

Bang there is another warning.

Told you

Didn't you say they couldn't warn again ?


muppet.

[dealy] 29/1/2019 07:45

3 billion market cap less 600m net cash gives 2.4 Billion enterprise value. With more than 500m Ebit it is valued at less than 5 times Ebit. This is a very cheap stock

[andyj] 29/1/2019 00:04

Oh and when you can drag yourself away from Roblox take a look at post 8631, before spewing your hindsight nonsense.

[andyj] 28/1/2019 23:04

Silly little boy, go back to playing Fortnite, the stock market is not the place for little ones with big egos.

[marcus wanky] 28/1/2019 19:05

You silly silly man. Royal Mail are currently employing many people using zero hour contracts through agencies.

[gazza270667] 28/1/2019 18:47

0 contract hours abolish the pension you really are a bell end....

[marcus wanky] 28/1/2019 14:58

I heard hindsight trades are always the best for some.

[andyj] 28/1/2019 12:19

The language of Fortnite hits the world of investment. Well having bought at 2.73, I am already over 10% up. Not bad for a noob eh..?