RE: Tomorrow’s results…..19 May 2022 08:30
· Outlook
· Royal Mail 2022-23: assuming pay deal can be agreed broadly in line with current offer, and without material industrial disruption, current adjusted operating profit consensus of £303 million (as at 18 May 2022)6 sits within range of potential outcomes, with downside risk. Cost savings in excess of £350 million identified to mitigate macro-economic pressures.
· GLS 2022-23: high single digit revenue growth and operating profit €370 - 410 million.
· GLS Accelerate: Assuming rebound in GDP growth in 2023-24, target of €500 million operating profit in 2024-25 and €1 billion accumulated free cash flow by 2024-25 can still be achieved.