Royal Mail Share Discussion Threads

[hermanngoring] 07/6/2019 16:41

Chancer

If and when we leave the rancid EU it will have zero effect on how the big Royal mail centres operate.

[lefrene] 07/6/2019 16:33

I know what you mean, I have supplied drivers to UPS. But leaving the gauleiters of Brussels doesn't mean putting ourselves under the thumb of Uncle Sam, although of course they will try to grab anything that they thing they can prise away with a crowbar.

[hermanngoring] 07/6/2019 16:17

It needs more than tweeking at mail centres.

There will never be change of culture. Unions run the roost.

Yes a growing parcels business but huge margin pressures.

[careful] 07/6/2019 15:55

Amazing that all of the above weaknesses were known 12 months ago and baked into the price of £6.30.
We must have all thought that with a bit of tweaking here and there and a change of culture, then £8 per share here we come.

Markets are mysterious how they react to irrational share price movements.
Who would have guessed at £6.30 with a growing parcels business, a profitable overseas operation, even an agreement with Alibaba....
that lefrene would write just 12 months later when the price had crashed to £1.97, yield 13%,
'I am not tempted yet.'

[hermanngoring] 07/6/2019 15:54

I don't wish to call out different races on here but there is one race of people at my mail centre that are the worst of the lot for being bone idle.

[lefrene] 07/6/2019 15:44

RMG is a great place for studying the work ethic of the worlds cultures! For instance I know that a 60+ year old 5' Polish granny is worth four young 6' Arab men, any day of the week.

[hermanngoring] 07/6/2019 14:57

A $10.6bn turnover and £241m profit is not that good.
That is the point, if the large mail centres are as bad as you say, the potential to boost profits pre tax to £500m+ is there.
And cash flow is ok, even that could be improved.

A massive effort is being made to improve this operation.

this is a £4bn+ cap company potentially.
(it was £6.3bn just over 12 months ago)




Royal Mail are heavily unionised and productivity gains are difficult to get. As I have said many times the majority of RM workers at a large mail centre I attend are down right bone idle.

[hermanngoring] 07/6/2019 14:56

Well said.

[lefrene] 07/6/2019 14:36

careful,

as said before there is easily avoidable waste, but it takes a strong change of direction at the top to shake up the civil service mentality of much of the workforce.

Although there is much more to this business than just driving mail/parcels about, anyone with real world haulage business experience can see in minutes that 'procedures' take precedence over fiscal common sense. Common sources of simple repeated cost incurring problems are never addressed, there are people running traffic offices who have never been on the road in a truck, indeed I know of at least one person promoted to management because she damaged six trucks! In the real world you get fired or put back on the shop floor from whence you came.

It's the sort of culture that punishes those who try to make improvements and, rewards those who blindly obey orders. Perhaps the new bloke can bring about changes, but the previous incumbent made no effort at all to create a pro-active culture.

One would hope the price is now near the bottom, but I'm not tempted just yet.

[careful] 07/6/2019 13:51

A $10.6bn turnover and £241m profit is not that good.
That is the point, if the large mail centres are as bad as you say, the potential to boost profits pre tax to £500m+ is there.
And cash flow is ok, even that could be improved.

A massive effort is being made to improve this operation.

this is a £4bn+ cap company potentially.
(it was £6.3bn just over 12 months ago)

[careful] 07/6/2019 13:32

Just 2% off overheads and this share price could double.
The hidden strength of this company is that there is fat and bad practice to trim.

[hermanngoring] 07/6/2019 13:26

Yes they are

[careful] 07/6/2019 13:09

have you a crystal ball?

[hermanngoring] 07/6/2019 13:07

yield is meaningless as divi will be cut in coming years.

[careful] 07/6/2019 12:53

wow, 100p and a yield of 26% would be great to see in print.
crazy times, 12.5% yield slashed to 7.5% is not good enough for us.

[hermanngoring] 07/6/2019 12:32

The collpase from 300p to 200p was swift.

The next leg down to 100p is not far off now.

[diku] 07/6/2019 11:11

Guys will the fuel costs impact...diesel going up...

[petralva] 07/6/2019 10:45

Well he did alright with gls after running it for 11 years.