Royal Mail (RMG) has narrowed the range of full-year operating profit guidance from £500m-£550m to £500m-£530m. Addressed letter volumes fell 8 per cent during the nine months to December, at the extreme end of management guidance, due in part to the impact of general data protection regulations (GDPR).
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Volume and revenue growth in the international logistics systems (GLS) business continued to slow, with management warning that the expected continuation of this trend could put further pressure on margins. While margin maintenance has been prioritized, headwinds from pay rises, inflation, and cuts to staff working hours give no clear room to manoeuvre.
