Shares in Royal Mail Group (LON:RMG) have been subdued in London in today’s session as the privatised postal operator unveiled management changes which will see chief executive Rico Back assume commercial responsibilities for the company’s UK Post and Parcels business. The update comes after group warned on profits last month.
As of 13:28 GMT, Royal Mail’s share price had given up 0.29 percent to 351.97p, underperforming the broader market rally which has seen the benchmark FTSE 100 index gain 1.28 percent to 7,130.53 points this Wednesday. The group’s shares have lost about 6.5 percent of their value over the past year, as compared with about a 5.2-percent dip in the Footsie.
Changes at Royal Mail
Royal Mail announced in a statement today that it was revising its executive structure, with changes in the organisational structure of Post and Parcels UK which will see Sue Whalley, CEO, Post and Parcels UK, step down. The group’s CEO Rico Back will assume commercial responsibilities for Post and Parcels, alongside his existing group role and overall UK strategic responsibility. Operational responsibilities for Post and Parcels will be taken on by Stuart Simpson, CFO.
The FTSE 100 company has also appointed Keith Williams, Chair of the Audit & Risk Committee, as Deputy Chairman with immediate effect. His previous roles include Executive Chairman of IAG’s (LON:IAG) British Airways unit until 2016.
Analysts on group
The 17 analysts offering 12-month price targets for Royal Mail for the Financial Times have a median target of 341.00p on the shares, with a high estimate of 500.00p and a low estimate of 250.00p. As of November 2, the consensus forecast amongst 18 polled investment analysts covering the blue-chip group has it that the company will underperform the market.