Nov 15, 2018

Royal Mail profits more than halve

Half-year profits at Royal Mail have tumbled after the company failed to cut costs as quickly as hoped. Chief executive Rico Back said Royal Mail had put a "Range of actions" in place to improve performance. Growth in online shopping helped drive a 6% rise in revenues for the UK parcels business, but total revenue from letters was down 7%. Adjusted pre-tax profit was down 27% to £183m. Royal Mail warned on profits at the start of October in an unscheduled update after revealing that cost savings would be just £100m this year rather than the £230m forecast, sending shares down almost a fifth. "Royal Mail has been in existence in one form or another for over 500 years. We have transformed ourselves many times before." The shares have nearly halved since peaking at 632p in May, prompting some Royal Mail staff to claim they have been short-changed.

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