Royal Mail set to post controversial profits

[deshulme]

http://www.express.co.uk/finance/city/4 ... al-profits" onclick="window.open(this.href);return false;
Royal Mail is set to unveil in its maiden results this week that its profits have grown by 34 per cent, which will fuel renewed criticism it was sold too cheaply and that taxpayers have been shortchanged.

On Wednesday the Royal letter carrier will announce pre-tax profits of £154 million for the six months to September 30 in its first set of financial results as a listed company, according to estimates from a stockbroker.

Barclays Capital analysts believe Royal Mail is seeing “robust” growth momentum in the parcel market as online shopping expands and the economy recovers.

Wednesday will also see a panel of MPs grill Business Secretary Vince Cable on last month’s Royal Mail flotation.

The firm was privatised at 330p per share, but the stock quickly rocketed in value due to investor demand, peaking at 591.5p. On Friday the shares closed at 536p a share.

Last week the Business Select Committee chairman Adrian Bailey said the Government would be “mad” to pay more than £4 million in deferred fees to the investment banks and brokers that worked on the privatisation.

Panmure Gordon’s Gert Zonneveld, who warned before the flotation that the shares were priced too low, forecast an improvement in Royal Mail’s operating profit excluding one-off costs.

[TrueBlueTerrier]

http://www.royalmailchat.co.uk/communit ... 18&t=58243" onclick="window.open(this.href);return false;