Royal Mail anticipate profit to hit £700m

In a trading statement, Royal Mail has said that it expects its adjusted operating profit for the financial year 20-21 to hit as much as £700 million.

The UK postal operator has observed that recent letter volumes and revenue trends have been far stronger than expected. Advertising, business and stamped mail have far outstripped expectations, though parcels have performed strongly but in line with expectations.

In their statement Royal Mail said: “As we near the completion of the Royal Mail management restructuring programme announced in June 2020, the charge associated with this is now anticipated to be c. £90 million compared to the original estimate of £140 million. We will deliver the targeted savings of £130 million annually, with around £15 million realised in the current financial year FY2020-21.

“GLS performance remains in line with prior expectations.

“As a result, if the current trading performance in Royal Mail continues for the remainder of March, we would expect Royal Mail revenue for FY2020-21 to be more than £900 million higher year on year.

“For the Group, adjusted operating profit for FY2020-21 is now expected to be around £700 million.”

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