JP Morgan article The Times

daveyeff · Post by **daveyeff** » 05 Nov 2020, 19:01

received this today via whatsapp, its from the Times newspaper today by Tom Howard, it says RM are expected to make an operating profit this year of £179M up from the expected £50M. Due to the second lockdown ahead of the Christmas shopping season. i thought we were losing 1Million pound a day?......sorry i dont know how to post the link. if anyone could oblige?

norris9 · Post by **norris9** » 05 Nov 2020, 19:09

daveyeff wrote:received this today via whatsapp, its from the Times newspaper today by Tom Howard, it says RM are expected to make an operating profit this year of £179M up from the expected £50M. Due to the second lockdown ahead of the Christmas shopping season. i thought we were losing 1Million pound a day?......sorry i dont know how to post the link. if anyone could oblige?

No idea. I never knew the reasons for this £1million a day loss anyway.... is it due to the amount of money being poured into investments, new depots, new vans, new sorting machines?

We are making plenty of money, but spending more than we are making on upgrades for the future?

Grumpyoldmailman · Post by **Grumpyoldmailman** » 05 Nov 2020, 19:16

norris9 wrote:No idea. I never knew the reasons for this £1million a day loss anyway.... is is due to the amount of money being poured into investments, new depots, new vans, new sorting machines?

We are making plenty of money, but spending more than we are making on upgrades for the future?

Investment in parcel hubs and paying managers redundancy, load it all into one year and plead poverty so you can fool the union and break it, then the year after you make a record amount and look like a superhero (with a big bonus no doubt)

GRS · Post by **GRS** » 05 Nov 2020, 19:48

If RM made say £500m last year and this year makes £150m then it’s still a profit overall however a loss of around £1m a day.

postslippete · Post by **postslippete** » 05 Nov 2020, 20:14

Royal Mail are not losing money, they might have cut their dividends and have plans to axe 2,000 managers but they actually have a very healthy balance sheet and have plenty of cash reserves to call upon to do so.

Take a look at Royal Mail shares - they are well up from its March/April Year low

https://www.londonstockexchange.com/sto ... ge?lang=en

centenaryman · Post by **centenaryman** » 05 Nov 2020, 20:40

no way on this planet are they loosing money....or making losses
there raking it in....a few companies have made a killing over covid....supermarkets...royal mail
theyve had parcel levels up to near xmas amounts for months.....now weve noticed the amounts are ramping up even further
even the mail is heavy at the moment.....no way is there no big profits around

Zicomurphy · Post by **Zicomurphy** » 05 Nov 2020, 20:50

Remember how colleague shares suddenly became worthless when it was time for them to pay out? Remember how the value of the proper shares fell through the floor just as we could sell them tax free? They will always manipulate the figures to suit themselves.

theotherone · Post by **theotherone** » 05 Nov 2020, 21:15

centenaryman wrote:no way on this planet are they loosing money....or making losses
there raking it in....a few companies have made a killing over covid....supermarkets...royal mail
theyve had parcel levels up to near xmas amounts for months.....now weve noticed the amounts are ramping up even further
even the mail is heavy at the moment.....no way is there no big profits around

In some sort of strange paradox though apparently the more parcels we handle the more money we lose!!
Because we are so far behind in automation and parcels are still relied on manually it costs them a bomb apparently.
So for the next 2 years we are going to run in to the ground because of all the parcels we handle if you believe them.

Seymour Buts · Post by **Seymour Buts** » 05 Nov 2020, 21:29

The Royal Mail group includes GLS I believe, which remains profitable. The UK based operation is losing money. It's cheaper for them to process mail as it's mostly automated, where as parcels are mostly manually sorted so it's inefficient therefore not currently as profitable. Old Rico got the push because mail volumes dropped in a matter of months what was forecast over five years, and the company was over exposed to that due to being over relient on revenue from letters.

Mr Rush · Post by **Mr Rush** » 05 Nov 2020, 21:54

Zicomurphy wrote:Remember how colleague shares suddenly became worthless when it was time for them to pay out? Remember how the value of the proper shares fell through the floor just as we could sell them tax free? They will always manipulate the figures to suit themselves.

In the film industry this kind of thing is called Hollywood Accounting, of which there are many infamous examples. It's why the big stars demand percentage of gross profits instead of net - because the books will be rigged to conjure up nine-figure expenses to prevent payouts. Somewhere in between lies, damned lies, and statistics is accounting.

daveyeff · Post by **daveyeff** » 06 Nov 2020, 17:27

GRS wrote:If RM made say £500m last year and this year makes £150m then it’s still a profit overall however a loss of around £1m a day.

you know what GRS, i never actually though about it like that, but that is probably exactly what they ARE doing. sounds spot on to me.

k979aaa · Post by **k979aaa** » 07 Nov 2020, 01:52

Profits disappear into the night like past CEO's !