Join our community of smart investors

Is a Royal Mail renaissance too good to be true?

The shares have risen more than threefold over the past year
Is a Royal Mail renaissance too good to be true?
  • A Covid-inspired parcel boom saw the group’s adjusted operating profit jump to £702m in the year to 31 March, up from £325m a year earlier
  • But the exceptional demand for parcel delivery is likely to drop off as the pandemic abates, and Royal Mail still faces some longstanding challenges  

Just over a year ago, both analysts and investors had been getting increasingly pessimistic about Royal Mail (RMG)’s outlook. Here was a business that was tied down by a structurally declining letters market and its ‘universal service obligation’ (USO), and had also been slow to adapt to the rise of online shopping and parcel delivery.


To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in