Royal Mail: down in the dumps after FY results
(CercleFinance.com) - Royal Mail is down over 6% in London on Thursday, after the postal group published a 31% drop in FY 2019-20 adjusted pre-tax profit, which reached 275 million pounds sterling, compared with 398 million pounds the previous year.
Its adjusted operating margin contracted by 60 basis points to 3%, reflecting what it says are cost headwinds in its UK mail and parcels business, while revenues grew by 3.8% to over 10.8 billion pounds.
Given the challenges of the current financial year, the board plans not to pay a dividend in for FY 2020-21, although it aims to resume dividend payments in 2021-22, management said.
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Its adjusted operating margin contracted by 60 basis points to 3%, reflecting what it says are cost headwinds in its UK mail and parcels business, while revenues grew by 3.8% to over 10.8 billion pounds.
Given the challenges of the current financial year, the board plans not to pay a dividend in for FY 2020-21, although it aims to resume dividend payments in 2021-22, management said.
Copyright (c) 2020 CercleFinance.com. All rights reserved.