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Anger
Here is a link to RMGs balance sheet. Get a calculator and deduct £2,739m in Total Current Liabilities from £3,015 in Total Current Assets and tell me what you get as a result. The figure is the value of Net Current Assets as opposed to Total Equity which is Total Assets - Total Liabilities and comes out at £5,334bn.
https://uk.investing.com/equities/royal-mail-balance-sheet
Guys RmG has masses of money
Read the accounts !
£1bn cash on deposit !!
I didn’t say you said there would be 10000 redundancy’s. I used that as a figure to show you roughly how much it would cost .But you are still saying there will be redundancy’s but not telling me where the money is coming from . Now I have spoke to 3 different managers at different offices and all 3 told me there will be no redundancy’s for postman what they said was people are leaving the business and not being replaced the term 1 manager used was natural wastage .Now 1 last time where is the money coming from for redundancy’s
Anger I’m still waiting for you to tell me where Royal Mail will have the money to pay for redundancy’s.All you said that if a business is losing money there will be redundancy when I pointed out it would cost about 250 million pounds if 10000 postman were made redundant . So I will ask one last time how will their fund it
The net current asset value of £276m I gave is calculated by taking current assets and deducting current liabilities. The £5bn+ figure you are talking about includes long term assets and liabilities which by definition aren’t liquid. Both figures are right, what is wrong is your assertion that a large % of Royal Mail’s assets are liquid.
So now you are using people who had their journey to the Commonwealth games disrupted as a barometer of public opinion as a whole. I could cite the unsuccessful attempts by BBC journalists to find someone willing the condemn RMT strikers on a visit to Manchester last week but that would be equally skewed, so a better gauge is the structured opinion poll data on the strength of support or opposition to strikers produced by professional polling companies. See Yougov for example.
The point I’m making about inflation is that when it is driven by companies taking excess profits, temporary surges in commodity prices, or consumer demand driven factors, it can be controlled without expecting workers to take the burden, especially when many of them have been carrying the burden for years while others have seen their wealth and living standards soar.
The £5bn figure is the net value of the company most recently reported . Very little of it is liquid. A fair chunk of it is overstated because it just represents the original capital cost of equipment and machinery after amortisation but which has almost zero real resale value. Do you think there are many buyers for used Integrated Mail processing machines, other than scrap merchants ?
Oligarch I’m not sure where Angz gets his information from but the net current assets of RMG in their latest published balance sheet amount to £276m. It is a bit of stretch to call that a “large %” of Net book value of £3.5bn.
Most of RMG’s assets are tied up in property and other long term capital assets.
BTW Angz you realise you have posted an article about what tourists coming to the U.K. think about U.K. transport workers disrupting their holidays by taking strike action. It’s hardly representative of public opinion in the U.K. is it ?
If that’s where you get your news you will always get a right wing anti union opinion on these issues. The most recent opinion polls showed a clear divide between people under 50 who tend to be more supportive of the strikes and those over 50 who are more anti.
Your assertion that everyone has to accept a below inflation wage increase for inflation to be brought under control assumes that wages are the only driver of inflation. This is obviously completely false given that the current surge in inflation is mostly driven by fuel and food price increases, and could be dramatically reduced by an end to conflict in Ukraine and far more constraint on profit margins and dividend payments.
Not sure about that, from what I’ve seen public support seems to be holding up, if anything the attention and anger is being turned towards corporate greed and dividends being paid to the already obscenely well off while workers are being offered below inflation pay settlements.
How about you show us how you did it Keef ?
Please film yourself doing that Deggsy !
Mr anger - I think we are all factoring in that there is a strike ?
Anyone betting that there won’t be would be a fool. However the longer it goes on the more time bankers have to tout around GLS so win win
But yes fundamentally arnt we all factoring in a strike ?
I personally think (as you can tell from previous mails) I don’t think the public will be over supportive of mail workers striking BECAUSE if the like for like wages / total comp comparisons to industry start coming out in the press - I don’t think the public will be sympathetic - on a business losing £1m a day .. in theory. The few people I know who are postmen doing it for liftesyle (NOT saying everyone does) will lose support quickly. Union bosses should be trying to retain jobs not hike up salaries to crazy levels. As we have discussed and plenty of supporting commentary that inflation will peak at 10-12% BUT rapidly reduce to 4-5% medium term. Hence giving over 5% could be very very wrong.
Some very simple share register psyche … if I may…
So, in the share price and register there is LOTs of bad news - I think we will all agree. And the shares small rally ..
If you are a public fund or private holder we have stuck through hopefully the worst. Most investors have taken the fall on the jaw and now will wait for good news. As such, the price and register should have consolidated. There probably isn’t too much more bad news that can be thrown at us that will make holders sell. That kind of holder is already out ! Probably a long time ago !
So the next move is hopefully some positive news, if any sort. That will / should cause new buyers. The register of current holders won’t sell on a smidgeoen of good news. Indeed might buy more. Hence any new buyers on any modicum of good news should cause a decent rally ! I think we could be back to 350p quite quickly.
To my recent mails, when a stock rallies even in a small way (don’t forget 13.3p ex out of the share price so nudging 300p old money) on a huge amount of negative news … then this is a good stock to be in.
As I say just some basic register / share price psyche from 30 years as a market practitioner
AngerSharkz, so if the value of RMG liquid assets are around £3.5bn (so not fleet, automation or property) what proportion would you assume belong to GLS and RM UK respectively and are these assets held against loans or other securities?
Is the book value of much relevance to the share price when most of it is tied up in delivering the USO under price constrained terms ?
Jargonpain, you have hit the nail on the head. The zero hour gig economy is exactly why today's workforce needs a strong collective voice otherwise it's a race to the bottom for Victorian Britain.
Hopefully the UK Government will jump on the utility companies who still continue to post obscene profits at the expense of those who work in the gig economy and are amongst the lowest wage earners.
When I read about these pay negotiations I can’t help but think of the zero hour economy. Often working at a fraction of the wage often without any real benefits often without any real pensions.
Until the UK gets to grips with the failed Marxists and the clandestine organisations the UK is marooned.
Time for them to move on. They’ve done enough damage to this country. Better understanding and better democracy and better relations with the world.
@ Anger.
Ted Wainman is talking up the finances of RMG 2021-2022? I got that from the charts and his little circles. Do you think he is being negative on RMG?
From making millions and giving away millions, to losing millions in a few short months. Yet the market doesn't reflect this. Including ex-dividend day. If the 3 month update was as bad as some think, the share price wouldn't be where it is. IMO.
@ Ableton.
A great watch and thanks for posting.
It would appear that RMG are in a great financial position, going forward. It almost looks like 2% enforced pay rise was derisory.
How odd then that Simon doesn't see it this way.
Listen to Ted, Simon. It really is that simple.
Especially the tiny bit about industrial action.
@ Scampthedog
""""Not surprised every single postie at Peterborough depot yesterday turned their backs to Simon Thompson...I am told he was greatly embarrased and almost tripped over himself in his haste to get out.""""
I heard about this. Apparently, he was trying to engage with staff and shake their hands, and they turned their backs. He was also booed. He was then trying to deny anything untoward happened at Peterborough. I'm not sure what the great man expected. Thanks????
But it's only rumour.
Clear & concise quick analysis / overview of RMG.
https://www.youtube.com/watch?v=qg46PA31hvg
Some good points tabled all thx, that help us all in investment decisions.
A year ago the Royal Mail ceo simon said at the analyst meeting . ‘before I start let the union boss speak’ … What followed was nirvana; working together for positive change said the union boss (first time ever on a city analyst meeting probably 200 on the call) and the share price hit 600p. Saye amongst others and holders shares roofed it. Everyone happy.
Let’s keep productive chat going. Thx
Does anyone know of any positive RMG vibe to the man or lady in the sheet in the City? Very few I think apart from something about GLS … but the shares are near 10% up since pre results inc divi.
We are deep into core value at RMG with hopefully positive news next either way
Commonsense, "union members should all be shareholders"..... Many are shareholders and have been since the launch in 2013.
"I would have the massive pension fund invested in the company"..... Thankfully for legal reasons that can never happen.
The original pension fund which ended in 2012 is shared with Post Office Counters and is managed by Capita on behalf of the UK Government.
The Royal Mail Pension Plan (post 2012) has a value of around £12bn, is managed by a separate group of trustees and is completely independent of RM.