RM strike fear drives away business customers

[TrueBlueTerrier]

Royal Mail strike fear drives away lucrative business customers but it still posts a 150% rise in half-year profits

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Royal Mail warned on slowing parcels growth as strike fears scared off lucrative business customers.

But the news didn’t overshadow a 150 per cent rise in half-year profits, which sent postal shares up by a further 6 per cent to finish 32p higher at 565p – compared to a float price of 330p.

Pre-tax profits rose from £94million to £233million in six months after revenues rose by 2 per cent to £4.5billion.

But some firms stopped using the group to deliver parcels after fearing that strikes would disrupt their businesses.

'We did see businesses that we had won competitively, in a couple of cases, say they will wait and see how we got through this horrible industrial relationship problem,' said Canadian chief executive Moya Greene.

Royal Mail shares: Investors are up 70% on float - what you need to know and latest price

Parcels make up 40 per cent of the company’s UK revenues. Although the number of parcels and packages being sent fell by 1 per cent in the six months, revenues from the division rose 9 per cent to £1.5billion.

Analysts have previously warned that parcels – seen as Royal Mail’s golden goose – may not grow as fast as hoped.

UBS already warned that growth in parcels will not keep pace with the boom in online shopping due to the increasing use of 'click and collect' services by retailers.

[Lincox]

A horrible relationship problem created entirely by Moya Greene and her methodology and total disregard to any of the employees she has ever had the misprivelege to manage.

[Godric]

maybe they should have a look at our place .... you can hardly move for packets .... i think someone is telling more fibs again Moya

[freelunch]

We call B/S on this, Moya
<cough> SMALL PARCELS <cough>

[Brain Fury]

Ridiculous comments. How can you possibly know whether there were a couple of firms that held back on giving us business or not.