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Royal Mail adjusts revenue and operating profit forecasts after trading ahead of expectations
StockMarketWire.com
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Royal Mail has revised upwards its expectations for full-year adjusted operating profit to around £700 million as a result of recent 'robust' letter volume and revenue trends and a reduction in the cost of its restructuring programme.
The company said that following its third quarter trading update on 11 February 2021, advertising, business and stamped mail were all performing above previous expectations, while growth in parcels in the UK remained strong but broadly in line with expectations.
Royal Mail confirmed that its management restructuring programme announced in June 2020, is now near completion and that the charge associated with this is anticipated to be approximately £90 million, down from the original estimate of £140 million.
The group will deliver targeted savings of £130 million annually, with around £15 million realised in the current financial year 2020-21. Royal Mail said: 'As a result, if the current trading performance in Royal Mail continues for the remainder of March, we would expect Royal Mail revenue for FY2020-21 to be more than £900 million higher year on year.
'For the group, adjusted operating profit for FY2020-21 is now expected to be around £700 million.'
At 1:31pm: (LON:RMG) Royal Mail PLC share price was 0p at 274.6p
Story provided by StockMarketWire.com
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