Royal Mail posts £6bn of sales thanks to online shopping boom

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Oil Mail’s revenue exceeded £6 billion over the past six months as the online shopping boom continued to transform a previously struggling business.

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The lockdown was good for Royal Mail, as postmen became one of the heroes of the pandemic.

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While the letter branch remains in structural decline – it is down 60% since 2004 – it even saw some resurgence as families were unable to see each other, looking for other ways to keep in touch. were in

Royal Mail is paying a dividend of 6.7pa shares and another £200 million in special dividends. There is also a £200 million buyback to please investors.

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The dividend payout is worth £240 to employees if they hold on to the 913 shares acquired when the company went public. He will get the check on January 12.

That was a controversial float back then. Even Margaret Thatcher once said she would not privatize the “Queen’s Head”. The float value of 330p was previously considered cheap. The stock rose 25p to 463p today.

Royal Mail made a profit of £378 million by the end of September, up from £18 million the previous year.

Chief Executive Simon Thompson said: “The Royal Mail is re-inventing flight; we are making pleasant progress with our transformation agenda. We are seeing the benefits of our programs to reduce costs, and address inflationary pressures.” We are developing our plans to make sure that our customers are always getting the service they expect from Royal Mail. of great levels.”

On Daniel Kretinsky, a 15% shareholder dubbed the Czech Sphinx, he said: “We meet with him and his team regularly, he is highly respected. I try not to guess the intentions of any of our investors, But our understanding is that he is committed to what he is doing.

Kretinsky’s intentions are not yet clear. Thompson says he doesn’t think Kratinsky wants to sabotage the business.

The billionaire also has stakes in Sainsbury’s and West Ham United.

Thompson again praised his employees. “We’re competing well. The team is fantastic. Every day they’re out there in the wind or hail or shine.”

Nicholas Height, Equity Analyst at Hargreaves Lansdowne, said of the figures: “The pace of Royal Mail’s turnaround has taken a beating, putting the group at very real risk of becoming a lucrative business.

“It would be easy to attribute the current unforeseen impact to the pandemic’s impact on parcel demand. And that has played a role. But scaling up facilities to deal with the excess demand is no small feat, and a quick look under the hood Shows a business that is in a far better shape than it was before the pandemic.”

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