The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
A few people gathering outside CWU HQ in Wimbledon demanding a refund on membership fee's, must be all the no voters...
https://shareit.pics/XTI7DA
This is a strong long period of currency devaluation, just look at the price of Gold to USD, i expect Gold to make its next leg up again soon for a new 12 months high.
Just remember even in hard times people find a way to make money and the gig economy isnt going anywhere any time soon, i expect this and new tech hardware to drive the next bull run, (with AI and DPU's for the PC).
IDS is positioned well to benefit from tech sales which were in over drive during covid lockdowns, the tech sold then in that cycle will soon be wanting replacing (2-3 years for those who like the latest gadgets ) i expect tech online sales to drive the market end of this year and start of next. You can already see it in the US which we lag behind.
Lets hope for some good later today or by RNS first thing in the morning ))
Can IDS’s share price rebound?
There’s no getting away from the fact that it’s been a tough time for IDS, but that doesn’t mean that the future has to be a second-class experience for shareholders.
A deal with the CWU over pay and working conditions was reached in April. Under the deal’s terms, Royal Mail staff will receive a 10% pay rise and a £500 one-off payment. The deal still needs to be ratified by union members, but it’s a positive development considering strike action has not only caused volatility in IDS’s share price, but contributed to hefty losses.
Progress has also been made on IDS’s five-point turnaround strategy. A 10,000 reduction in headcount at the end of March 2023 exceeded a 5,000 target and should deliver £150m in benefits for 2023-24.
IDS said that it expects to see a significant year-on-year improvement in the second half of its 2023-24 fiscal year “due to revenue recovery and efficiency initiatives as well as lapping main impacts of industrial disruption”.
For the 2024-25 period, the group is targeting a return to adjusted operating profit for Royal Mail before voluntary redundancy costs.
According to data from Simply Wall Street, IDS is expected to grow earnings and revenue by 113.6% and 3.6% per annum respectively. Earnings per share is forecast to grow 111%, while return on equity is predicted to be 8.4% in three years.
The hiring of a new CEO and an agreement with the unions should help IDS focus on getting back to profitability. But there’s still a long way to go before it starts delivering for its shareholders.
IDS’ share price has a 245p, 12-month median price target from analysts tracking the stock. Hitting this would see a 10.3% upside on Friday’s close.
Royal Mail owner International Distribution Services’ (IDS) share price has delivered investors a healthy return over the past month. After a series of disruptive strikes, IDS finally struck a deal with the Communication Workers Union over pay and working conditions. With that out of the way, the hope is that the group will swing back into profit, having taken a battering in its last set of results.
IDS share price up over 13% since the start of June.
End to strikes could provide IDS with much-needed stability after months of volatility.
Forecasts are for revenue and earnings to grow over next couple of years.
International Distribution Services’ [IDS] share price has gained over 13% since 1 June. The stock hit a high of 231.11p in intraday trading on 4 July. While IDS’s share price has softened slightly, closing Friday 7 July at 222.1p, it is trading in a different class to May, when it slumped over 22%, to end the month trading just under 200p.
Still, over the past 12 months the stock has slipped 18% and is trading below a 260p year-high, hit in intraday trading on 25 April. This could signal that, despite the recent upswing, the stock is trading at a discount.
How is IDS performing?
IDS’s share price slump in May can partly be blamed on the publication of a bruising set of annual results.
For the 52 weeks ending 26 March, IDS reported a group operating loss of £748m, down from a £577m profit in the same period the previous year. Royal Mail posted an operating loss of £1.04bn, having made a £250m profit the previous year. Logistics business GLS delivered a £296m profit, down from £327m.
On an adjusted basis Royal Mail’s operating losses totalled £419m, down from a £416m profit. IDS blamed this on industrial action, inability to deliver proposed in-year cost saving, and fewer Covid-19 test kits being sent.
Prior to the results in May, it was announced that Royal Mail CEO Simon Thompson would be stepping down in October. Thompson’s two-year tenure at Royal Mail was marked by strikes and fractious dealings with the Communications Workers Union (CWU).
Thompson said: “now is the right time to hand over to a new CEO to deliver the next stage of the company's reinvention”. Symbolically, at least, the departure of Thompson could represent a fresh start for Royal Mail, after a bumpy 12 months.
More logs for the fire, burn baby burn, isnt that right Mr Lard ;-)
https://www.cmcmarkets.com/en-gb/opto/royal-mail-owner-ids-share-price-is-up-13-since-junecan-the-rebound-continue
Very pleased to see POLY keeping to their word with further investment in Kaz, its all about the dividends just remember that, all the rest will fall into place once divi's are reinstated, BOD dont want this delayed as they also need those Divi's! regardless of how much bashing Big-green-eyes does.
This moves has so way to go yet, 236 minimum i expect it may go past before consolidating, last legs of elliots wave is usually the biggest and start of long term trend...
@saltybigblueballs - your becoming a progressive drama Queen, the Dylan Mulvaney of warmongering
Gets complicated when you look at it like that, can see why the CWU are acting desperately, makes no difference really to workers or share holders as they have already said there wont be anymore strikes so take what your offered or get nothing.
Playing the old waiting game dragging it out might work by Davey boy, but that pot was well past boiling point so even now it might not be long enough for things to have cooled down, CWU have nothing to gain and everything to lose in this poorly played game of Pokerface.
@Oligarch - many companies have nefarious methods of making their staff work flat out, the harder you work the more they give you and you become your own worst enemy, im sure some system are setup for failure for only that purpose.
@Isleworth - "How's your average by the way? Still posting thinking of your wallet? Don't worry. Your 5 quid+ per share investments will soon be in profit."
You were being nasty, im not Mr Angry and will sit here arguing with you all night, so you will have to find another for that. Doesnt matter a jot if you like my opinion or not, couldnt careless. Perhaps Lord Red will entertain you?
See you have to start being nasty isleworth dont you, im not opening that door i bow to your superior knowledge sir, but you will have to try harder than that to wind me up ;-)
The point is a systems can be wrong, if a system is nearly always failing surely that tells someone with a little bit of common sense that something is not right? Or maybe RM like having these posties stretched to the limit?
Here they all come haha i knew this one would strike a chord, look the point was from outside nobody knows any different, while your all arguing about failure this late that the customer knows nothing and is just happy, how many actual complaints do you get off customers? Regardless of what is deemed as a failure, how many complaints compared to how many letters delivered, lets talk percentages here
One thing that i noted when talking to the posties she said about round failures, what maybe a round failure internally is not necessarily a failure externally.
Example if you post 2nd class its goes through no different to first class and gets there just as quick in my experience, most customers understand 2nd class is 3-5 working days.
So mail left over from the day before undelivered is always next in the queue and gets delivered first, why internally that maybe seen as a failure i guess hardly any customers would notice it, and probably still get a much better service than 5 working days?
So what is deemed failure on the inside of RM just gets the posties feet working a little harder with the pressure, thats how i read it, in reality how many customers complain, little to none i bet...
yes, not for wanting to be accused of having ocd, with all the career industries ive been involved in you cannot afford to be sloppy, things can go very wrong quite quickly, for our current acceptable standards you only have to look at the s**** show representing us in the house of commons. when you are represented by a bunch of clowns making up the rules as they go a long what hope has the average man got...
it seems logical to think taking a letter with a parcel, i admit to not knowing the internal complexities or the sorting and handing out to posties on certain runs, but i have no doubt it adds wasted time to each run requires extra staff at a cost, giving the parcel deliveries a chance with no additional stress from letters allows rm to start to compete with the other couriers, if only for two days over the weekend. you can then start to see where the value is, perhaps the .gov should be persuaded to give it a trial run?
Another new account, another new day, there are some posters who come on our board who must think we where born yesterday, you know who you are, you will slip up again just like you did a couple of weeks back, im already onto you just remember your only one click away from getting caught, then the hole house cards will come tumbling down....
Had good chat yesterday with the local posty girl ;-) she say's she'd forgotten about the vote everyone at their DO is just getting on with it, she couldnt even tell me if it was the ballot vote or vote to agree haha
She agree's the USO needs to be dropped to 5 days a week the only people who moan are the real old dinosaurs if their letters dont come on time on a weekend.
I would love the world to go back to a place where everything is organised, on time, efficient and of high quality, just like these oldies remember, but the world is a different place now, its ok to lie, its ok to cheat, its ok to give poor service as long as you are making money and paying your taxes (cough cough) isnt that right Red?
Big-baloney is a phoney