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Royal Mail warns on full-year profits

The post company cut full-year profit expectations after it failed to deliver on productivity improvements
Royal Mail warns on full-year profits

When Rico Back took over from Moya Greene as chief executive of Royal Mail (RMG) in June, he was faced with a company navigating structural change in its industry. Productivity improvements were meant to compensate for rising costs, but so far to little avail. During the first half productivity improved by 0.1 per cent, making the 3 per cent goal by the year-end look unrealistic. As a result, the cost savings target was reduced from £230m to £100m.

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