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Royal Mail chief executive tops up

The postal group is battling declining letter volumes, higher costs and deteriorating margins
Royal Mail chief executive tops up

Royal Mail (RMG) recently revealed that its parcel and international logistics systems (GLS) business – previously the most resilient division – had started to show signs of weakness. Rising costs drove margins down from 7.5 per cent to 5.7 per cent, a far greater contraction that analysts had anticipated. This followed October’s profit warning, when management informed the market that missed productivity and cost-savings targets would dent operating profit. Meanwhile, a 7 per cent fall in letter volumes exceeded the expected 4 to 6 per cent decline and a 6 per cent improvement in UK parcel volumes failed to offset the damage.

IC TIP: Sell at 333p

Such disappointments sent the shares tumbling, so it’s no wonder management is attempting to shore up confidence in a potential recovery. Chief executive Rico Back purchased 162,000 Royal Mail shares priced between 300p and 318p, spending £506,044 in total. Mr Black used to head up the GLS division before taking over as group chief executive from Moya Greene earlier this year.

Buys       
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
3i   David Hutchison 16 Nov 1813,200800105,60013,2000.001
3i   Simon Borrows (ceo)16 Nov 18250,000803.67832,009,19614,139,4991.453
3i  Coline McConville20 Nov 183,097807.124,9963,0970.000
3i  Simon Thompson (ch)16 Nov 1812,378807.8399,99368,3180.007
3i  Jonathan Asquith19 Nov 1840,000809323,60087,5820.009
Audioboom  Michael Tobin (ch)21 Nov 181,600,0001.219,2004,659,9000.397
Babcock International  Myles Lee21 Nov 187,50055141,32520,0000.004
Barratt Developments John Allan (ch)20 Nov 1810,000479.8847,98876,7050.008
DCC Mark Breuer19 Nov 18340581519,7713400.000
Devro Paul Withers16 Nov 1830,000176.2952,887140,0000.084
Devro Rutger Helbing (ceo)19 Nov 1810,000176.617,66052,5000.031
Electrocomponents Lindsley Ruth (ceo)20 Nov 1810,000560.566756,057332,2210.075
Feedback*Alastair Riddell (ch)16 Nov 181,000,0001.515,0006,000,0001.607
Feedback*Simon Sturge16 Nov 185,333,3331.580,00012,833,3333.438
Forterra♥Shatish Dasani (cfo)16 Nov 1818,70021740,579108,8530.054
Georgian Mining Neil O'Brien16 Nov 18250,0006.516,2501,650,0001.438
Georgian Mining Gregory Kuenzel (fd)16 Nov 18250,0006.516,250597,4670.521
Georgian Mining Michael Struthers16 Nov 18350,0006.522,750350,0000.305
Georgian Mining Peter Damouni 16 Nov 18220,0006.514,300407,5000.355
Intermediate Capital  Benoit Durteste (ceo)15 Nov 1850,000962.95481,475529,2650.180
Intermediate Capital  Kevin Parry (ch)15 Nov 1810,216973.5799,46040,0920.014
Lloyds Banking  Norman Blackwell (ch)16 Nov 1850,00054.127,050150,0000.000
Lloyds Banking  Simon Henry19 Nov 1850,00055.1227,560250,0000.000
Maven Income and Growth VCT 4 Steven Scott15 Nov 1821,66470.562115,287202,8380.263
Maven Income and Growth VCT 4 William Nixon15 Nov 18119,68770.562184,454428,7100.555
Morgan Advanced Materials Peter Turner (cfo)21 Nov 18100,000269.518269,518140,0000.049
Reach Nicholas Prettejohn20 Nov 18106,68570.475,106106,6850.036
Robert Walters Robert Walters (ceo)16 Nov 1813,53555975,6612,238,1592.961
Rolls-Royce  Warren East (ceo)20 Nov 189,488790.474,99335,3560.002
Royal Mail Rico Back (ceo)20 Nov 1850,000299.9323149,966212,0000.021
Royal Mail Rico Back (ceo)19 Nov 18112,000317.9268356,078162,0000.016
Sage  Donald Brydon (ch)21 Nov 1822,000514.97113,293100,0240.009
Schroder Real Estate IT Alastair Hughes16 Nov 18100,00056.756,700100,0000.019
SIG Nicholas Maddock (fd)20 Nov 1813,340105.349514,05478,4100.013
SIG Andrew Allner (ch)20 Nov 1815,000105.755315,86343,9540.007
SIG♥Nicholas Maddock (fd)20 Nov 1862,938105.86366,62865,0700.011
Sportech Richard McGuire 16 Nov 18170,00040.468,680690,0000.369
Sportech Richard McGuire 16 Nov 1880,0004132,800770,0000.412
SSE Peter Lynas19 Nov 183,000111733,5105,0000.000
SSE Anthony Cocker16 Nov 185,0001122.756,1355,0000.000
Sumo  Andrea Dunstan16 Nov 1820,00015030,00020,0000.013
Ten Entertainment  Adam Bellamy15 Nov 1810,000231.123,11010,0000.015
Tristel Paul Swinney19 Nov 188,30023519,5058,3000.019
Tristel David Orr19 Nov 188,30023619,58827,8110.063
Vertu Motors Kenneth Lever16 Nov 1860,00038.1522,890100,8000.027
XLMedia Ory Weihs (ceo)19 Nov 1884,76110488,1514,556,7352.068
Zenith Energy Andrea Cattaneo (ceo)15 Nov 181,050,0003.334,65018,822,93312.287
Sells       
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
AB DynamicsAnthony Best19 Nov 18100,0001497.751,497,7506,047,10730.953
AB Dynamics Robert Hart (fd)16 Nov 186,5011537.599,9536,5110.033
AB Dynamics♥Robert Hart (fd)16 Nov 186,5111537.5100,10700.000
AB Dynamics Matthew Hubbard16 Nov 181,000157015,700108,6490.556
AB Dynamics♥Matthew Hubbard16 Nov 181,000157015,700107,6490.551
Alpha Real Trust Jeffrey Chowdhry20 Nov 1820,00013226,40010,0000.015
Investec Ian Kantor20 Nov 18200,000485.3143970,629609,0450.089
Ricardo Mark Garrett 20 Nov 1872,000678488,16061,2230.115
Ricardo♥Mark Garrett 20 Nov 181,500693.210,39859,7230.112
System1  John Kearon (ceo)16 Nov 18358,974195699,9992,961,23523.551
*Placing/tender/open offer ♥Spouse/connected party