Its roots date back to the 1500s when Henry VIII established the ‘Master of the Posts’, but Royal Mail (RMG) has failed to deliver a majestic return for investors. When its shares were listed in 2013, a potential growth story was on offer – after years of public ownership, there was scope to remove inefficiencies, boost profit margins and shift to parcel delivery as e-commerce took flight. But progress has been painstakingly slow, and the shares are down more than two-fifths from their 330p flotation price.
IC TIP:
Sell
at
184p
Tip style
Sell
Risk rating
High
Timescale
Long Term
Bull points
More resilient international operations
Potential takeover target
Bear points
Structural decline in letters market
Slow shift to parcels and increasing competition
Perpetual labour issues
High short-selling interest