ANNOUNCEMENT : ROYAL MAIL EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (UPDATED 2016)... HERE



Royal Mail's annual earnings to decline as it loses market share in parcels, Liberum warns

14 Jul 2017, 13:13

http://www.proactiveinvestors.co.uk/com ... 80908.html

Royal Mail delivers a trading update on Tuesday with a key focus on the performance of its parcels business

Royal Mail PLC (LON:RMG) will be unable to offset a decline in letter revenue with growth in parcel deliveries this financial year as competitive pressures continue to mount, according to Liberum.

Liberum repeated a ‘sell’ rating on Royal Mail and cut its target price to 385p from 400p, saying it expects the post office will continue to lose market share in parcels.

The company, which will update the market on its performance in a trading statement on Tuesday, has seen its parcel business meet fierce rivalry from the likes of Hermes and Yodel.

Adding to the competition, Amazon has built its own network to deliver products it sells.

Liberum sees risks to Royal Mail's parcel business
The number of packages and parcels in the UK grew by 65% to 2.8bn between 2012 and 2016, according to a recent report by market research firm, Mintel. In comparison, Royal Mail’s volumes grew by just 8% between March 2013 and 2017.

Liberum said it sees three risks to Royal Mail’s ability to increase parcel revenues enough to deliver long-term earnings growth.

The risks to the parcels business include online retail customers demanding faster deliveries at more predictable time slots, the company’s capacity for delivering larger and heavier items and intense price competition.

Royal Mail has become increasingly reliant on revenue from parcel deliveries as demand for posting letters continues to decline due to the internet explosion.

At its 2017 full year results in May, the group said it expects letter volume declines of between 4% to 6% per year over the medium term and would expect that fall to reach the higher end of the range in the following year "if the current climate of business uncertainty persists".

Liberum cut its earnings per share forecast for fiscal year 2018 by 13% to 35.2p, compared to 44.1p the previous year.

Royal Mail changes pension scheme
Royal Mail is also tackling changes to its current pension scheme. The company has said that it will be offering employees a choice between a defined benefit or contribution scheme that would be funded within its current £400mln annual pension contribution.

The postal operator said in April its existing defined benefit pension scheme from 31 March 2018 after finding that annual contributions could more than double to £1bn if no changes were made.

The move followed extensive talks with unions, including Unite/CMA and the Communications Workers Union (CWU).

Royal Mail's annual earnings to decline as it loses market share in parcels, Liberum warns

14 Jul 2017, 14:51

TrueBlueTerrier wrote:
The risks to the parcels business include online retail customers demanding faster deliveries at more predictable time slots, the company’s capacity for delivering larger and heavier items and intense price competition.


The RM board need to introduce dedicated parcel delivery duties. You will never be able to do time delivery slots while postmen/women are out delivering letters at the same time. Yet another prime example of Moya and co with their heads up their arses who have no interest whatsoever in growing this business. Even if we don't strike, these bastards will destroy all new revenue to be made. All RM managers at all levels are a disgrace to this industry.

Royal Mail's annual earnings to decline as it loses market share in parcels, Liberum warns

14 Jul 2017, 16:07

Phantom,
Yes, they might have had some idea of the need to introduce dedicated parcel delivery duties from Special Deliveries, the few 9am ones needing a dedicated duty and many of the 1pm ones necessitating deviation from the usual route. :thumbdown

Royal Mail's annual earnings to decline as it loses market share in parcels, Liberum warns

15 Jul 2017, 19:03

Absolutely correct there's no chance of us becoming a realistic credible player in the ever increasing parcel market by working as we do now, one example is we can't offer timed delivery slots bookable the day before like DPD, and we never will as long as we are delivering letters at the same time and p#ssing about with d2ds ! (Yes I know RM make money from them but how much are they potentially losing ?) What we need is a separate fully trackable parcel product which could be delivered 'the final mile' from our delivery offices by dedicated staff kept apart from our regular business. We've got the infrastructure, the premises, everything, but it won't happen, the closest we'll get is 'trialling' some bollox plan of putting someone on pkts while their walk is lapsed which obviously won't do, by then it will be too late !

Royal Mail's annual earnings to decline as it loses market share in parcels, Liberum warns

15 Jul 2017, 19:18

Maybe, shock horror, it's time for Royal Mail to stand back and have a thorough rethink about their current range of Tracked, Signed Fors and Special Deliveries. :cuppa

Royal Mail's annual earnings to decline as it loses market share in parcels, Liberum warns

17 Jul 2017, 15:43

RM can't also bemoan how horribly we're doing during negotiations and then wonder why analysts follow suit.

Royal Mail's annual earnings to decline as it loses market share in parcels, Liberum warns

18 Jul 2017, 11:37

Why don't RM make Parcel Force better with timed deliveries? Currently with PF you have no idea when an item will arrive apart from the vague 24/48 timing. And the rest of us in Royal Mail could never deliver any type of timed delivery with all the rest of the mail, catalogues and D2Ds. So comparing us to Hermes or Yodel is nonsense.

Previous page Next page


Page 1 of 1