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Royal Mail warns of further letters decline

The group achieved record revenues in the first-half, but sees trouble ahead
Royal Mail warns of further letters decline

The seemingly endless exercise of democracy in the UK has provided a boost for Royal Mail (RMG). The European parliamentary elections in May helped to arrest the decline in UK letter volumes at 5 per cent, rather than 8 per cent without. The forthcoming general election will provide a boost in the second half, but management warned that letter volumes would continue to dwindle overall and is expecting a drop of 6-8 per cent in the 2020/21 financial year. Technological change, rather than privatisation, has proved to be the primary drag on group performance – although, eventually, it may come to be seen as a double-edged sword.

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