Royal Mail is poised to charge back into the FTSE 100 after its shares roared 300 per cent higher during the pandemic.
After crashing to an all-time low last year, the postal service's stock is trading at three-year highs.
It is seen as a 'prime contender' for promotion to the FTSE 100 after being relegated to the FTSE 250, analysts say.
Writing on the wall: After crashing to an all-time low last year, the postal service's stock is trading at three-year highs
Writing on the wall: After crashing to an all-time low last year, the postal service's stock is trading at three-year highs
The blue chip index is due to be reshuffled on June 2, with ITV seen as an outside runner to also make the cut. Engineering giant Renishaw is heading for demotion.
Russ Mould, investment director at AJ Bell, said Royal Mail is on course to take its place but added: 'It is very close. With one week still to go, anything can happen.' A return to the prestigious index would crown a rollercoaster period for Royal Mail and put a feather in the cap of chairman Keith Williams.
The former state monopoly, which was privatised for 330p per share in 2013, is one of Britain's biggest companies, employing 140,000 staff.
But bosses were left red-faced in 2018 as it was demoted to the FTSE 250 following a string of embarrassments. After Rico Back replaced Moya Greene as chief executive in 2018, a row erupted over a £6m 'golden hello' handed to the German boss.
Under Back's leadership, the share price collapsed as poor industrial relations led to strike threats and modernisation efforts stumbled.
The stock crashed to a record low of 124.3p in April 2020, as global stock markets were roiled by the pandemic.
Back resigned the next month and Williams was parachuted in as executive chairman, just as a boom in demand for parcels during the pandemic provided a boost.
The share price has now rallied more than 320 per cent higher, closing at 523.4p on Friday. Royal Mail was boosted again on Thursday as it reported record sales of £12.6billion for the year to March 31 – and bumper profits of £730m.