https://www.investorschronicle.co.uk/shares/2018/11/29/royal-mail-chief-executive-tops-up/Royal Mail chief executive tops upBy Julia Faurschou
Royal Mail (RMG) recently revealed that its parcel and international logistics systems (GLS) business – previously the most resilient division – had started to show signs of weakness. Rising costs drove margins down from 7.5 per cent to 5.7 per cent, a far greater contraction that analysts had anticipated. This followed October’s profit warning, when management informed the market that missed productivity and cost-savings targets would dent operating profit. Meanwhile, a 7 per cent fall in letter volumes exceeded the expected 4 to 6 per cent decline and a 6 per cent improvement in UK parcel volumes failed to offset the damage.
Such disappointments sent the shares tumbling, so it’s no wonder management is attempting to shore up confidence in a potential recovery. Chief executive Rico Back purchased 162,000 Royal Mail shares priced between 300p and 318p, spending £506,044 in total. Mr Black used to head up the GLS division before taking over as group chief executive from Moya Greene earlier this year.Buys Company Director Date No of shares Price (p) Value (£) Holding (shares) Holding (%)
Royal Mail Rico Back (ceo) 20 Nov 18 50,000 299.9323 149,966 212,000 0.021
Royal Mail Rico Back (ceo) 19 Nov 18 112,000 317.9268 356,078 162,000 0.016