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.
More resilient international operations
Potential takeover target
Structural decline in letters market
Slow shift to parcels and increasing competition
Perpetual labour issues
High short-selling interest