Royal Mail share price subdued ahead of group’s full-year results

Update to mark last results under Moya Greene

Royal Mail share price subdued ahead of group’s full-year results

Shares in Royal Mail Group (LON:RMG) have fallen into the red in today’s session, ahead of the privatised postal operator’s full-year results tomorrow. The update will mark the last results under chief executive Moya Greene who is set to be replaced by GLS boss Rico Back in September.

As of 14:20 BST, Royal Mail’s share price had lost 1.81 percent to 598.00p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.14 percent higher at 7,733.85 points. The group’s shares have added a little over 40 percent to their value over the past year, as compared with a near three-percent rise in the Footsie.

Royal Mail results preview

Royal Mail is scheduled to updated investors on its annual performance tomorrow and Proactive Investors reports that UBS forecasts that the company will report revenue of £10.148 billion, underlying earnings (EBITDA) of £1.042 billion, and a dividend per share of 23.9p.

“Given the recent labour agreement and guidance that FY2018 operating profit would not be less than £680 million, we believe the focus will be on the FY2019 guidance,” the analysts pointed out, adding that current consensus for operating profit pre-transformation costs stood at £684 million, i.e. flat year-on-year.

The results will come after the privatised postal operator disclosed last week that it had missed its quality of service targets, citing “very challenging industrial relations environment” as one of the reasons.

New boss at postal group

The results will mark the latest update under Greene, who is stepping down later this year, with GLS boss Rico Back due to take over.

“This will be the last set of results with the current CEO but we do not expect any major strategy changes with the change in management,” UBS pointed out, as quoted by Proactive Investors.

As of 15:00 BST, Wednesday, 16 May, Royal Mail share price is 596.60p.

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