Royal Mail resumes dividends with projected profits of £700m

Royal Mail has announced it will be restoring its dividend payments to shareholders after its business has started to improve significantly.

During the pandemic, the postal operator was forced to stop paying dividends but on Tuesday declared it would pay 10p a share as a one-off final dividend for the 2020-21 financial year. This compares negatively to 2019’s 25p a share dividends.

Though the dividend is small, the payment is seen as sending a message of confidence in the company as e-commerce has boomed in the pandemic, rescuing the business that was faltering. Letter, parcel and international parcel volumes have surged in recent months.

The March trading update suggested that profits for the financial year could well reach £700 million.

More:   Packfleet lands £8m in seed funding