This article was correct at the time of publishing, however, it may no longer reflect our views on this topic.No news or research item is a personal recommendation to deal. "(Royal Mail's) turnaround plan is likely back to square one," said Credit Suisse analyst Arthur Truslove. "This raises serious doubts over the company's ability to revive its fortunes as the shift from letters to parcels accelerates," he added. Hargreaves Lansdown is not responsible for an "I look forward to seeing Royal Mail transform into a parcels-led, international delivery company," Back said on Friday.Royal Mail has liquidity, including undrawn credit lines, of around 1.8 billion pounds, and said it also has access to the government's corporate facility if needed.
Non-executive chairman Keith Williams will act as interim executive chair of Royal Mail Group until a permanent CEO is appointed, the company said. Meanwhile the letters business, which is probably in terminal decline anyway, has seen marketing mail collapse and parcels has turned out to be an unexpectedly competitive business. A few years ago we would have described this unit as small, but impressive growth, acquisitions and a struggling UK operation mean it's accounted for the majority of profits recently. The company said Back, who founded and ran Royal Mail's German arm GLS for almost three decades before taking over as group chief executive in 2018, had agreed with the board to step down with immediate effect and would leave the firm on Aug. 15.Non-executive chairman Keith Williams will act as interim executive chair of Royal Mail Group until a permanent CEO is appointed, the company said.He has been tasked with leading talks with stakeholders about an "accelerated pace of change across the business", it added.Back last year promised a 1.8 billion pound programme to transform Royal Mail into a sustainable, profitable operation by 2024, but that turnaround plan has been delayed by labour unrest and uncertainty caused by the coronavirus crisis.The company has been locked in a dispute with its largest labour union the Communication Workers Union (CWU) over direction, national agreements on working conditions, and workplace culture.The CWU, which has been discussing industrial action since the end of last year, voted in favour of a strike in March.Royal Mail shares, which have lost about 30% of their value this year, turned negative to trade down around 1.2% at 160.2 pence after the news of Back's departure. He has been tasked with leading talks with stakeholders about an "accelerated pace of change across the business", it added. Non-executive chairman Keith Williams will act as interim executive chair of Royal Mail Group until a permanent CEO is appointed, the company said.
Investments rise and fall in value so investors could make a loss.This article is not advice or a recommendation to buy, sell or hold any investment. Trust Royal Mail to send your letters and parcels.
Royal Mail is in a better position than some, in that its core letters and parcels business does at least continue to trade. The number of letters being via Royal Mail also decreased by more than a third which severely hit revenues. Yields are variable and not guaranteed. He will be replaced by Keith Williams, who becomes interim Executive Chairman. The increase in online shopping is even providing a boost to some parts.Overall though the significant fall in postal volumes both in the UK and internationally looks set to decimate profits this year.
In fact, efforts to avert industrial action means costs are increasing. Our website offers information about investing and saving, but not personal advice. | Tax, investments and pension rules can change over time so the information below may not be current. All investments can fall as well as rise in value so you could get back less than you invest.CEO Rico Back is stepping down with immediate effect, with The group has seen a dramatic decline in addressed letters since the end of March, more than offsetting increased parcel volumes, with UKPIL revenues down £22m in April. Newly appointed Chairman, now executive Chairman, Keith Williams will have his work cut out until a new CEO is appointed. All that has led to a reshuffle at the top. The group is nursing cash flow through the lean times, with the result that the full year dividend has been scrapped.However, the real problems stem from the fact Royal Mail wasn't in the best shape to weather a downturn to begin with.Disagreements with unions mean cost savings have proven harder to deliver than expected. Compare prices for posting in the UK and abroad, buy stamps and redirect your mail if you move house. (Reporting by Yadarisa Shabong in Bengaluru; Editing by Anil D'Silva, Sherry Jacob-Phillips and Jan Harvey) We may not share Along with existing spending plans, that was set to see the group invest £1.8bn in the UK postal system over 5 years.Unfortunately all that investment comes at a price, and in the current environment that price may be too high.
Back last year promised a 1.8 billion pound programme to transform Royal Mail into a … The former British Airways executive has experience dealing with a heavily unionised workforce, but the challenges posed by coronavirus are another matter.
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