Royal Mail Share Discussion Threads

[cwa1] 25/8/2022 13:32

25 August 2022

Royal Mail plc ("Royal Mail")

VESA EQUITY INVESTMENT S.à r.l. ("VESA"): National Security and Investment Act 2021 ("NSI Act")

Royal Mail has received notification from the Secretary of State for Business, Energy and Industrial Strategy ("Secretary of State") that he reasonably suspects that arrangements are in progress or contemplation which, if carried into effect, will result in VESA increasing its shareholding in Royal Mail from 25% or less to more than 25%.

The Secretary of State has notified Royal Mail that such a step would constitute a trigger event under the NSI Act and that he is exercising his call-in power under section 1 of the NSI Act.

Royal Mail will fully cooperate with this review and a further announcement will be made as and when appropriate.

Vesa's most recent notification to Royal Mail in relation to its holding, as disclosed to the market on 19 July 2022, indicated that Vesa held just over 22% of the total voting rights in Royal Mail at that time.

[coxsmn] 25/8/2022 10:58

They need to accept fair 5.5% pay rise, then all get behind re-structuring the business to benefit everyone.

[lefrene] 25/8/2022 10:52

Welcome to the 1970's coxsmn. The last 50 years have been squandered, we've been going backwards.

I'm surprised that the name of 'greeness' has not been invoked to reduce mail deliveries in the countryside to every other day. Save all that fuel/emissions and reduce employee's. Find ways of being more flexible with lorry movements, instead of moving large numbers of empty trucks all over the country just to maintain a fixed timetable. Royal Mail has huge opportunities to save costs if it were allowed to do so.

Perhaps the way forward would be to allow it to go bust, and then re-start with commercial imperatives ruling the operation, and ditch the civil service types and culture at the same time.

[coxsmn] 25/8/2022 10:20

The business is struggling needs to invest and modernise for the benefit of everyone yet a reasonable 5.5% pay rise rejected and Unions out of touch with reality and encouraging irresponsible demands

[lefrene] 25/8/2022 07:47

tuftymatt, a good many of Parcel Force van drivers are classed as 'self employed' providing their own vans (sign written), but being paid per parcel, the rate depending upon city or country delivery, plus size and weight. If they want a day off they have to provide their own driver cover. The drivers of the Parcel Force artics are a mix of Royal Mail employed, and I believe those at the Coventry Parcel Force hub are employed by Parcel Force.

As things slow down (energy bills eating disposable income), there will be less stuff being bought on line, and thus less stuff to be moved. A price war between carriers could arise. Not an industry with a rosey future until the current slow down is resolved.

[careful] 25/8/2022 07:19

Maybe the management wish to provoke to bring this to a head.
Remember Thatcher closing loss making coal mines in Yorkshire.
Right on Skargill's doorstep.

The CWU are impossible and stuck in the past.
But how strong is the support from the membership?

I am not anti postie, far from it, but they get an estimated 40% more pay than comparable workers doing similar work.
They know that, they are not all stupid.
And they know that RMG is loss making right now.
`They know how inefficient the operations are.

As happens sometimes, the CWU will lose the support of its members if times get hard.

[tuftymatt] 25/8/2022 06:49

Agree there is no future as things stand but if statements as posted today are being said then that's only going to be like showing a red rag to a bull.

[tuftymatt] 25/8/2022 06:46

I think that statement is a typical RM response in order to as always push everything back on the workforce.

Union members up and down the country work in industries that operate 24 / 7 so I think the quote is stupid. I am sure RM can employ more staff if they want to run longer operational hours and I know that ParcelForce, part of RMG, do Sunday deliveries too.

[careful] 25/8/2022 06:45

So the management want to rip up the deal signed by Moya Green agreed with Vince Cable at time of privatisation.

It seems like the ultimate surrender document.
It has to go, no wonder Cable was accused of selling off RMG cheaply.

This battle has to be won, there is no future as things stand.

[coxsmn] 25/8/2022 06:37

The Unions are rmg's worst enemy.

A Royal Mail spokesman said: "While our competitors work seven days a week, delivering until 10pm to meet customer demand, the CWU want to work fewer hours, six days a week, starting earlier and finishing earlier."

[tuftymatt] 17/8/2022 10:15

Good to see this one trying to climb up from a low RSI position.

[diku] 14/8/2022 07:25

If Truss wins it will be interesting to see how she deals with PM question time in HOC...particularly during heated exchanges from oppositions...her face expressions...DC used to handle it very well...

[brucie5] 14/8/2022 07:17

I like your optimism.
😏

[careful] 13/8/2022 12:56

Interesting prediction assumes a Labour victory.

A simple solution is at hand.
Give Putin a deal, take his oil/gas, sideline Zelensky.
Hardship and poverty at home or taking sides in a localised spat on Russias border.
Complex history many do not understand.

Things will look better in 2 years time.

[brucie5] 13/8/2022 12:18

I believe, as Truss has more or less admitted herself, there is only one well known economist who supports her view tax cuts, Patrick Minford, but he also says this would lead to huge rate in interest rates. So unless she performs one of her well known U turns I cannot view a Conservative admin under her with anu confidence whatsoever. Rachel Reeves by comparison, comes across as a heavy hitter, though obviously bringing different solutions. Truss will be out in two years.

[careful] 13/8/2022 11:38

Many of us are quietly thinking about how we can modify our portfolios to mitigate the effects of a liberal/labour government.

It will be interesting to see if re nationalisation is in the labour manifesto.
or maybe more stringent regulation.

But the disaster of Johnson has now had the opposite effect.
A Labour government is likely, maybe joining with Lib Dem.

[brucie5] 13/8/2022 10:25

careful10 Aug '22 - 16:15 - 12934 of 12936

"...we shareholder are happy to get a modest capital gain and about 4% dividend."
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Careful, I'm no doubt a bit out of touch with this one, but I was under the impression from both Stocko and Dividend max that the yield here is >7%. Otherwise, no doubt it's been a very poor investment for me and others, I perhaps I should have sold.
As to the future of RMG, I'm not sure a post-Corbyn KS Labour Party would put this top of their list to nationalise when there are far more likely utilities that are palpably failing. I'd say that next next Labour Party would rather the bod and employees find a way through for their mutual benefit, and in a way that ensures the interest of the institutional investors whose money will be needed to modernise and drive forward the business.
That said, I haven't added because the chart still looks dire, and as a believer in pictures, the one I'm looking at suggests it could just return to £2 level, a third of its recent peak, where I might become seriously interested.

[encarter] 11/8/2022 07:42

I'm not so sure. Ultimately the CWU want a labour government and re-nationalisation and management want to crush the union. Maybe with everything else going on the time has finally come to go to war.

[unastubbs] 11/8/2022 04:37

good luck with AV. tufty, I'm hanging on to mine, the income is so good there. my largest holding. i wouldn't ignore an opportunity to get back in if offered as they are going to £5.50 and beyond.

sorry to go ot.

[careful] 10/8/2022 15:15

Strange price action today.

A sensible compromise should be found.
Giving the CWU the option to call a strike is normal, the posties will always vote for that.
A negotiating ploy.

But posties actually being asked to make sacrifices and go on strike is far more worrying for them.

Shareholders want the posties to be well paid and have job security, after all we are the owners of the business have paid money for our share of the company.
But the workforce receive about 70% of the turnover, as well and pensions and benefits, whereas we shareholder are happy to get a modest capital gain and about 4% dividend.

It is in everyones interest to get a solution here.

[tuftymatt] 10/8/2022 14:41

Must admit to just jumping ship over at AV una.
Too good a short term rise for me not to take my money out and jump back in on a dip is my only thought there as the results were great. May regret it should it not come back a touch.

Back to RMG and I am really pleased to see it heading north on the day right now. Agree to hold off on adding right now but will hold and buy into strength. It has a long way to go before my average goes up that's for sure!!

[unastubbs] 10/8/2022 12:32

would take a brave man to buy in after this news, but the fall hasn't been as bad as I thought it would be. i'm not tempted at all to top up, but likewise can afford to wait it out, so not considering selling here. i believe the chance of a break up of GLS and RM is a little bit more likely after today and so perhaps that is supporting the price?? totally unsure. not in panic mode but it's an uncomfortable place we're in just now. thank goodness for my AV. shares!

[careful] 10/8/2022 06:55

Some wars have to be fought.
this is one.

[vatteton] 10/8/2022 06:39

10 August 2022



NOTICE OF INDUSTRIAL ACTION RECEIVED FROM THE COMMUNICATION WORKERS UNION (CWU)



Royal Mail has received notification from the CWU that it intends to call upon its members to take strike action for 24 hours on the following days:



· 26 and 31 August 2022 for shifts beginning at or after 04:00 hours

· 8 and 9 September 2022 for shifts beginning at or after 04:00 hours



If the announced strike action takes place, it is expected that Royal Mail in the UK would be materially loss making in FY2022-23.