Royal Mail

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  • 512.75p
  • -4.00p (-0.77%)


Royal Mail share price: Postal operator under fire after US writedowns

Royal Mail under fire after US writedowns

Group writes down value of two recently acquired businesses

4 weeks ago


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About Royal Mail

Royal Mail is the UK's government-owned postal service and incorporates Royal Mail Holdings plc, owner of Royal Mail Group Ltd. Royal Mail Group operates the distinct brands of Royal Mail, which provides a letter delivery service, Parcelforce Worldwide, the parcel delivery service. The other two brands are Post Office Limited which operates counters and post offices around the country and General Logistics Systems a logistics company operating internationally.
Currently Royal Mail Holdings is owned by the Secretary of State for Business, Innovation and Skills with the status of a public limited company. Royal Mail is due to be sold by the UK government and privatised through an estimated £3 billion IPO scheduled for the autumn of 2013 after which time the company will be listed on the London Stock Exchange. This has been facilitated by the 2011 Postal Services Act allowing the government to privatise up to 90% of Royal Mail.

The privatised company will be under the legal obligation to maintain the public service element to Royal Mail's postal service meaning that loss-making operations in less densely populated regions will have to be compensated for via the profitable operations elsewhere. The newly privatised company will however largely not be liable for the present company's pensions commitments which will be transferred to the government.

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