You are here

Prices & Quotes - UK Markets - Royal Mail (RMG)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Up 519.00p
Change Today:
0.40p
Market Cap:
5,190m
Sector:
Industrial Transportation

Royal Mail to pay one-off divi, plans doubling GLS profits by 2025

By Frank Prenesti

Date: Tuesday 30 Mar 2021

LONDON (ShareCast) - (Sharecast News) - Royal Mail said it would pay a one off dividend and held full-year profits guidance as it planned to double profits at its parcels division as Britons shifted to online shopping during the Covid pandemic.
The letter and parcels delivery company will pay shareholders 10p a share after reporting a rise in volumes earlier this month due to a surge in parcel deliveries from online shopping during the Covid pandemic.

Annual group adjusted operating profit is still expected to be around 700m, while GLS adjusted operating profit was forecast to be around 350m and adjusted operating profit margin 8.7%.

Ahead of an update on medium-term targets for the GLS business, including a focus on business-to-consumers, the world's oldest letter carrier on Tuesday said it would increase operating profits to €500m from 2019-20 - 2024-25, grow revenue at around a compound 12% from €3.6bn in 2019-20) generate €1bn of free cash flow.

The board expects to announce a new dividend policy for the group with FY2020-21 results on May 20, the company added.

Royal Mail raised its annual profit forecast on March 10, citing stronger-than-expected advertising, business and stamped mail volumes this year.

In February it forecast annual profit ahead of market expectations as Covid-19 restrictions pushed parcel delivery demand to record levels and Christmas mail eased a slide in letter volumes.

Richard Hunter, head of markets at interactive investor, called Royal Mail's turnaround "astonishing" as the momentum of bumper Christmas trading has spilled over into the new year.

Royal Mail posted adjusted operating profit of 325m a year ago, with the boom also assisted by better than expected volumes at its ailing letter business, "where the inexorable rise of online activity has led to physical cards and letters being the subject of terminal decline" he said..

"The restructuring charge is also likely to have improved, now estimated at 90m as opposed to the 140m originally envisaged, while the international GLS business remains the hub of growth."

However, Hunter warned that challenges remain for the group, with competition "particularly fierce in the parcels business and it is not yet clear whether the current volumes are at a temporary peak as customers have been driven to online shopping from their homes during the pandemic".

"Along the way, it has been nothing short of a rollercoaster ride for investors. From the initial float price of 330p in 2013, the shares peaked at 630p in May 2018 and then troughed at 124p in April 2020."

The shares have risen by nearly 290% to the current level of around 510p, as compared to a rise of 47% for the wider FTSE250 and Hunter suggested the stock would be a "strong contender to regain its FTSE100 status at the next reshuffle".

"The company is currently being cheered from the sidelines by investors, with the market consensus having done a complete U-turn over the last year, now coming in at a strong 'buy' on prospects," he said.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Royal Mail Market Data

Currency UK Pounds
Price 519.00p
Change Today 0.40p
52 Week High 528.00p
52 Week Low 157.50p
Volume 1,697,079
Shares Issued 1,000.00m
Market Cap 5,190m
Beta 0.02

Performance Indicators

Compare performance with the sector and the market.

Key
Vs Market
Vs Sector
Value
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. half market star
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. half sector star
  5. empty sector
Price Trend
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. half market star
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. half sector star
Income
market
  1. full market star
  2. full market star
  3. half market star
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. half sector star
  4. empty sector
  5. empty sector
Growth
market
  1. half market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
Price Chg 6m
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. half market star
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. empty sector
P/E
market
  1. full market star
  2. full market star
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. empty sector
  4. empty sector
  5. empty sector
PEG
market
  1. full market star
  2. full market star
  3. full market star
  4. half market star
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. half sector star
  5. empty sector
Dividend Yield
market
  1. full market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. empty sector
  4. empty sector
  5. empty sector
EPS Growth
market
  1. full market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. half sector star
  3. empty sector
  4. empty sector
  5. empty sector
Operating Margin
market
  1. full market star
  2. full market star
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector

What The Brokers Say

Strong Buy 9
Buy 0
Neutral 6
Sell 0
Strong Sell 0
Total 15
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Royal Mail Dividends

  Latest Previous
  Final Interim
Ex-Div 29-Jul-21 05-Dec-19
Paid 06-Sep-21 15-Jan-20
Amount 10.00p 7.50p

Trades for 14-May-2021

Time Volume / Share Price
16:35 764,788 @ 519.00p
16:29 256 @ 518.60p
16:29 9 @ 518.60p
16:29 244 @ 518.60p
16:29 400 @ 518.34p

Royal Mail Key Personnel

CEO Simon Thompson