Monday, 1 October 2018

Royal Mail shares ended 18% lower on Monday on profit warning



Royal Mail shares ended 18% lower on Monday after it warned on profits in an unscheduled trading update.

 
The post and parcel firm said cost savings would be just £100m this year rather than the £230m forecast.


Addressed letter volume fell by 7% in the first half of the year, while productivity performance was "significantly below plan".


Adjusted operating profit before transformation costs would be between £500m and £550m as a result.


That is significantly lower than the £694m posted last year.


Shares fell 85.7p to 391.4p after the trading update was issued an hour before the London market closed.





BBC       News.