Article..23 Dec 2021 17:47
in IC well worth a read, the first paragraph reads thus-
'The Royal Mail (RMG), with us for more than 500 years, is loved and disliked by the UK public in equal measure. In the UK, it is a business clearly in need of modernisation that generates margins of only a little over 5 per cent. The European arm (more a courier than national mail carrier) makes closer to 10 per cent returns. Is sweeping modernisation set to drive up returns and make a great recovery story? Or is this people-heavy business going to struggle under the burden of high inflation? Even if margins do not materially rise in the UK, there is a case to be argued that this business is significantly under-valued within the group. Add in some generous dividends and there is scope for Royal Mail to deliver a lot of value. '