Royal Mail Share Discussion Threads

[lefrene] 06/2/2020 11:43

washbear, the parcel side is by far the most efficient, and they have adopted their competitors system where all new van delivery 'employees' are 'self employed' having to provide their own liveried van and getting paid per delivery. Behind the scenes in a local parcel depot you will see Mercedes adverts pinned up offering a liveried serviced van for a fixed monthly fee. It's non surprise to see that the majority of Parcel Force vans are Mercs.

The main Parcel Force hub is at Coventry and I've never seen such a busy or well organised site anywhere, I doubt you could squeeze any more operational efficiencies out of it. It's odd how the parcel side is about as efficient as it could be, and yet the mail side of the business is less so.

[oiht] 06/2/2020 11:32

I thought it was good value at 3.60 - surely.

[encarter] 06/2/2020 11:32

Medium term for sure.

[willienikit] 06/2/2020 11:27

Surely this must be good value at 172?

[washbear] 06/2/2020 11:22

Thanks. I am right in thinking that Parcel is respectively profitable ?Regarding Post Offices I have only ever seen Royal mail guys picking up post .

[lefrene] 06/2/2020 11:16

Parcel Force are part of RMG, they share vehicles, but Post Office Counters ltd I believe are a separate entity that RMG has a commercial relationship with. Although I have wondered if Post Offices could switch to other carriers?

[washbear] 06/2/2020 11:05

Point of Clarification someone please?So Post Offices Counters ltd have nothing to do with RMG?Also Parcel Force . Are they are separate entity too ?

[lefrene] 06/2/2020 10:42

Brut Winky, there was quite a cull of excess managers in the year following the flotation, although many were offered other jobs to remain on their existing salary but forgoing any increases until their new job rate caught up with their existing managers salary. At the same time there was a cull of 'ghost runs' these were trucks running empty in both directions, but kept in place to maintain the number of managers jobs.

I last did work for them two years ago, but I doubt much has changed, it was still very much a civil service type culture where 'procedures' took precedence over real world actualities. Quite literally a 'jobsworths' mentality. Plenty of Mr Mainwarings exercising their vanity in any number of depots.

There needs to be a culture change at lower management level, the actual workers are as good as any you would wish to find, it's the petty power politics amongst junior management that I found the most irksome and commercially disconnected. Probably because most are promoted beyond their capabilities, and they know it, they know they won't be better paid or feather-bedded anywhere else in such a basic industry. So they make a point of blindly following orders even though in some instances it's obvious that this wastes time and money.

The last ceo was just a caretaker, it needs somebody with some vision and the nerve to take a bit of risk. Play the 'green' card, refusing to do polluting daily deliveries with 90% empty vehicles to remote places would be a start.

[encarter] 06/2/2020 08:56

I agree. Divi is safe at around 8%. Find a better return on your investment.

[sr2day] 06/2/2020 08:35

at this price this is a steal.

[encarter] 06/2/2020 08:12

Bloody battle with CWU on the orizon

[careful] 06/2/2020 07:38

Revenue will be almost £11bn.
operating profit £300-£340m.
pre tax /eps...don't know.

predicted loss for nest year.

It seems they are shaping up to take on the unions.
The unions want to break RMG hoping Boris will take it over as Railways/Fly Bee.

HMG interference are killing RMG/ BT/ CNA...almost as bad as Corbyn.
If Corbyn had won and renationalised RMG we would get more that todays price.

[sr2day] 06/2/2020 07:29

300/340 million profit and a generous final div on the table i doubt he will be able to find his nob.

[stevenrevell] 06/2/2020 07:21

Shanks I think u nob will be on the table in the next week does this still pay a divi

[neilyb675] 06/2/2020 07:19

Overall, our recent trading performance has been broadly in line with our expectations. We confirm adjusted Group operating profit is expected to be £300-340 million (before IFRS 16) for 2019-20.

[our haven] 06/2/2020 07:12

Trading update out and fair to say disappointing. I think that the future guidance is what will hit the share price again today, that and the inevitable strike action to come. Took 0.5% off the parcels division with just the thought of it over Christmas.

[sanks] 05/2/2020 19:42

Im looking to put my nob on the table at £1.40
Serious comments appreciated

Sanks...updating level 4

[brut winky] 05/2/2020 16:58

I am a shareholder and like you CreditCrunchies have been topping up over the last six months @ 2.10 and a few weeks back at 2.13 after buying in heavily for me at£3.30 in oct 2018.
Do agree in a way about population and distance and was looking along those lines in respect to profitability, but I also think they have problems with profitability in general from too many staff, they need a shake up and convincing one, because its ok having the best up to date facilities, like they will have when the investments over the next four years are finished but if its only for sake of doing business and not making any progression on profits you might as well let corbin and co run it, because in ten years time parts will be getting outdated and where will the free cah flow be to pay for it, playing pass the parcel is the future but there needs to be a traet when opened.
As for UKexit its all paying for,'for the sake of it' and the sake of political correctness and bums on seats of boards for the numbers, and in my opinion is exactly why behind the scenes everything so corrupted and badly managed, just look at labour they are pushing for a female leader even though one at this point may not be the best option, and government and local authority are the worse culprits

[lefrene] 05/2/2020 16:52

Perhaps the Scots would like to meet the full true cost of the universal service to all those outlying places? After all they must be embarrassed about being subsidised by the Sassenach's :¬) Oh wait a minute, those nice Eurolanders are going to pay the bill, aren't they?

RMG doesn't get a fair cut of the cake being forced to subsidise uneconomic areas of business. Will they get a fairer deal under Boris now the yoke of Euro servitude is being lifted from the nations back?

[encarter] 05/2/2020 16:33

To make it fair the whole UK should have a vote on a split.

[encarter] 05/2/2020 16:31

Yep they would be able to charge airmail prices rather than the uso. Servicing Scotland is done at a loss by rmg. Come on Nigel form the English independence party and let's vote for Englexit.

[creditcrunchies] 05/2/2020 12:44

delivering to the remote regions is costly though so Scottish exit would boost profits, same as Irish exit would boost profits. Point is their populations are tiny, the coverage in area is large, you add up NI population about 2 million, Scotland it's about 5 million. Population of England is 58 million highly lucrative, large towns short distances. The quicker we offload these inefficient regions the better in reality. It's just the establishment want to keep the union not the people of England if these regions want independence all you need is a UK referendum on it and it's a done deal they're out on their own

[brut winky] 04/2/2020 21:14

An even bigger problem that has yet to mentioned, the loss of its moat when Scexit happens and they print their own stamps, along with Irexit and of course wexit.
But there would still be business being done, but just how much and how lucrative, also with scexit, irexit and wexit would they get a share of the 50% the counrty still owns, and even of the uk tangible and non-tangible assets, would be interesting to see what is left of England itself.
In reality they might still be overvalued given the workforce redundancies payments when they drive themselves out of jobs striking, apparently amazon staff have it worse, and anyone can deliver things cant they, but the point made about the land an buildings is fair point, they do have some nice places that would make good weatherspoons or flats.