Royal Mail share price: Company posts improved delivery results

on Nov 25, 2013
Updated: Oct 21, 2019
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iNVEZZ.com, Monday, November 25: Royal Mail Plc (LON:RMG) today reported that it had met its first and second class delivery targets for the first half of 2013/14. The news came after last week postal regulator Ofcom warned the newly privatised postal service that it could face financial penalties for missing important performance targets.

**Royal Mail meets first and second class delivery targets**
Royal Mail announced today in a statement that it was ahead of its targets for first class and second class mail in the first half of the 2013/14 financial year. In the six months to September 30, the company delivered 93.2 percent of first class mail the next working day, slightly above its 93 percent target. It also surpassed its 98.5 percent target for second class mail with 98.8 percent of deliveries within three working days. In addition, Royal Mail said that 111 of 118 individual postcode areas had either met or exceeded the group’s quality of service targets during the same period.

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“The quality of our service to customers is key to our success. We are working hard to consistently improve our service performance,” Mark Higson, managing director of operations and modernisation at Royal Mail, said in the statement. “I’m pleased that we are ahead of our targets for First Class and Second Class letters and parcels at the half-year stage.”

**Ofcom warning**
The upbeat results followed an Ofcom warning with the regulator saying that the recently floated group had missed the 93 percent first class target in the year to March when it delivered 91.7 percent of its first class letters on the day after collection. (Royal Mail share price: Company missing postal targets) Ofcom said that it would consider opening a formal investigation which could potentially result in enforcement action and fines.

Despite today’s update, an Ofcom spokeswoman told The Telegraph that the regulator would “be reserving judgement until the end of this financial year” and that the warning on a formal investigation and fines “absolutely still stands”.

Royal Mail is scheduled to report its first set of financial results as a listed company on Wednesday. Express.co.uk yesterday quoted an unnamed stockbroker as forecasting pre-tax profits of £154 million for the six months to September 30.
**As of 14:05 UTC, buy Royal Mail shares at 534.00p.**
**As of 14:05 UTC, sell Royal Mail shares at 533.00p.**

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