RE: Results17 Nov 2020 09:27
I think it will be really good and I think they will get the government £500 million to £1 billion contract, due to all the changes they have implemented. Also as mentioned on this chat board, Matt Han**** thanked RMG for all their hard work, which now needs to be rewarded.
Well referring to their last RNS, they have done a lot of cost saving and financial restructuring and have started the new picking up the parcel from your door step. I think all this positive steps puts RMG back on top of the game.
Trading update covering the five months ended 30 August 2020
Royal Mail
-- Parcel volumes up 34% (177 million more parcels) and revenue up 33.1% year on year.
-- Addressed letter volumes (ex. elections) down 28% (1.1 billion fewer letters)
-- Letter revenue down 21.5%
-- Total revenue up GBP139 million
In the first five months of the year, we have seen a substantial shift in our business from letters to parcels. The strong growth in parcel volumes is being driven by B2C and e-commerce. Whilst this has driven better than expected revenues, as discussed previously, our legacy in letters has held back operational changes needed to adapt our business to a market that has fewer letters and more parcels. As a result, the mix shift from handling more parcels and fewer letters increased costs in the period by GBP85 million.