English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

UK to sell remaining stake in Royal Mail

LONDON: The UK government has announced the sale of its remaining 30 percent share in Britain's Royal Mail this year as part of a £4.5 billion plan to reduce public sector debt.

Current value of the stake is £1.5 billion, based on a share price of 526 pence, and when sold will complete a privatization program that began in October 2013 and raised £1.7 billion.

Royal Mail Magna Carta 1A day after the flotation that saw 10 percent of the shares going to employees, the Royal Mail stock price rose to 455 pence - valuing the company at £4.55 billion and leading to charges the government had undersold it.

Of the remaining stake, Conservative government finance minister George Osborne said: "It is the right thing to do for the Royal Mail, the businesses and families who depend on it – and crucially for the taxpayer." He added that reducing the country's public debt would deliver lasting economic security: "For as everyone knows, when it comes to living within your means, the sooner you start the smoother the ride."

As part of his latest budget cuts, Osborne also announced the UK Department for Transport will sell land adjacent to London's King's Cross railway station that has a current book value of £345 million.

Moya Greene Royal Mail CEOIn May, Royal Mail reported a 2014 pre-tax profit of £400 million on revenue of £9.42 billion. Total investment increased from £617 million to £658 million during the period as net debt fell from £555 million to £275 million.

CEO Moya Greene (right) commented: "We have delivered operating profits in line with our expectations. Our continued focus on efficiency resulted in a better than expected UK cost performance, offsetting lower than anticipated UK parcel revenue. At the same time we have delivered a large number of innovations at pace as we transform our business."

The company said parcel delivery volume in the UK covering business-to-consumer (B2C), consumer-to-any-recipient (C2X) and business-to-business (B2B), will grow at four percent per annum in the medium term. "However, we estimate that the impact of Amazon delivering an increasing number of parcels using its own delivery network will reduce the annual rate of growth in our addressable market to around 1-2 per cent in the short term."

The fastest areas of growth for UK parcels traffic is expected to be clothing, footwear, toys and sports equipment.

In March this year, the company launched a shopfront on Alibaba's Tmall Global e-marketplace. The platform will offer 300 million Chinese consumers the opportunity to buy British products and have them delivered by Royal Mail's Parcelforce Worldwide service.

Related: Employees to get more Royal Mail shares.

 

News

Written on 26/05/2017, 16:16
powerful-future-ahead-for-madagascarPORT LOUIS, Mauritius. May 24, 2017. Volga-Dnepr Airlines has now completed a series of flights begun in March to deliver power generators from Mauritius...
Written on 25/05/2017, 20:07
rhinos-return-to-rwandaAKAGERA, Rwanda: May 25, 2017. Ten years after the Eastern black rhino disappeared from Rwanda following decades of poaching, 19 animals have now taken up...
Written on 25/05/2017, 18:33
port-everglades-gets-expansion-go-aheadPORT EVERGLADES, FL: May 24, 2017. Port Everglades is to invest US$437.5 million to add new berths for larger cargo vessels and install crane rail...
Written on 24/05/2017, 20:42
hapag-lloyd-takes-a-big-step-with-uascHAMBURG: May 24, 2017. Hapag-Lloyd and the United Arab Shipping Company (UASC) have completed their merger. Shareholders at the annual general meeting on...
Written on 23/05/2017, 21:03
dhl-adds-rail-link-between-shenzhen-and-belarusSHENZHEN: May 22, 2017. DHL Global Forwarding has launched the first regular LCL and FCL rail service that connects Shenzhen to Minsk in Belarus in less...
Written on 22/05/2017, 19:48
cathay-pacific-launches-restructuring-with-layoffsHONG KONG: May 22, 2017. Cathay Pacific is making 600 head office staff redundant following the announcement in March of a three-year business...
Written on 18/05/2017, 21:59
air-zimbabwe-banned-from-europeBRUSSELS: May 17, 2017. In an update to its Air Safety List, the European Commission has banned Air Zimbabwe from flying to the 28 EU Member States "due...
Written on 17/05/2017, 22:43
russian-logistics-network-signs-development-agreementMUNICH: May 17, 2017. Meeting at the transport logistic trade fair last week, members of Russia's Associated Cargo Experts Alliance (ACEX) and the...
Written on 17/05/2017, 19:41
oman-to-adopt-tir-conventionMUSCAT: May 17, 2017. The International Road Transport Union (IRU) is to support the Oman Global Logistics Group (OGLG) in developing Oman as a major...
Written on 15/05/2017, 21:56
record-port-call-for-savannahSAVANNAH, GA: MAY 15, 2017. COSCO Development, at 13,000 TEU the largest box ship to call at an U.S. East Coast port, moved a record 10,000 containers...
Written on 11/05/2017, 14:24
lufthansa-cargo-still-caring-for-humansMUNICH: May 10, 2017. Lufthansa Cargo has celebrated the 10th anniversary of its employee-inspired humanitarian logistics program Cargo Human Care (CHC)...
Written on 10/05/2017, 20:34
renewed-b-logistics-rebrands-as-lineasMUNICH: May 10, 2017. Less than two weeks after it re-launched itself as Lineas, rail logistics company B Logistics has come to transport logistic in...
Written on 09/05/2017, 21:52
cranes-get-a-lift-from-hansaHAMBURG: May 09, 2017 – Hansa Heavy Lift (HHL) has moved two 870 tonnes cranes from a decommissioned power station at London's port of Tilbury to...
Written on 09/05/2017, 18:49
ups-to-handle-dubai-expo-logisticsDUBAI: May 09, 2017. UPS is to sponsor the logistics for World Expo 2020 Dubai, to be held between October 2020 and April 2021. The company has also...
Written on 09/05/2017, 16:51
cargolux-carrier-of-choice-emirates-skycargoMUNICH: May 09, 2017. Emirates SkyCargo and Cargolux are to share aircraft capacity, networks and respective hubs in Dubai and Luxembourg in a new...
Written on 05/05/2017, 20:30
new-multipurpose-service-links-u-s-and-mediterraneanLEER, Germany: May 03, 2017. Multipurpose vessel operator BBC Chartering is adding ocean capacity between the Mediterranean and the US- East Coast, with...
Written on 04/05/2017, 20:42
royal-schiphol-group-costs-klm-millions-claimAMSTERDAM: May 04, 2017. KLM reported Q1 2017 revenue of €2.2 billion - a 3.3 percent rise over the same period last year. EBITDA increased €14 million to...
Written on 04/05/2017, 19:06
bmw-to-increase-rail-link-to-chinaMUNICH: May 03. China's news agency Xinhua reports BMW plans to increase its use of 'Silk Road' rail networks to ship components from Europe. According...
Written on 03/05/2017, 20:21
ethiopian-provides-support-for-drought-reliefTOULOUSE: May 02, 2017. German NGO humedica e.V and UK non-profit Aviation without Borders have used an Ethiopian Airlines A350 XWB delivery flight to...
Written on 28/04/2017, 19:13
amazon-3rd-party-fulfillment-revenue-up-34-percentSEATTLE: April 28, 2017. Amazon has reported net income of US$724 million on sales of US$35.71 billion for the first quarter of 2017. Results for the...

- powered by Quickchilli.com -