Royal Mail results show healthy profit of £283m
The Royal Mail has announced its results for the first half of the year. In its last full half year before privatisation it did well delivering a pre-tax profit of £283 million.
Indeed the process that moved Royal Mail towards sell-off did help the results. Debts were reorganised, they received a £35m VAT credit from HMRC and incurred lower than anticipated “transformation costs”. The profits represent a notional earning per share of 16.8p.
It does make me wonder. Privatisation is for state-owned firms that aren’t operating in a businesslike fashion. Delivering what is, by any measure, a decent profit surely shows that that RM wasn’t broken and in need of the commercial touch.
It’s also worth noting that parcels now represent 51% of Royal Mail’s revenues. You can read the full details here on the Royal Mail plc website.
This news comes on top of an announcement that the Common business committee will examine whether Royal Mail was sold off too cheaply. Shares are now changing hands at around 560p each after a float price not so many weeks ago of 330p