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Royal Mail to return over $500 million to shareholders after strong H1 -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – The Royal Mail logo is visible outside Mount Pleasant Sorting Office, as a delivery van arrives in London. This was June 25, 2020. REUTERS/John Sibley/File Photograph

(Reuters) -Britain’s Royal Mail After predicting higher earnings for its UK business, (LON:), the postal company announced Thursday that it will return 400m pounds to shareholders ($539.84million).

One of the most renowned postal businesses in the world, the company was able make a comeback since the outbreak. More people started shopping online which helped boost its parcel delivery business.

Royal Mail may be affected by rising costs, however analysts warn.

Simon Thompson, chief executive officer said that the company is seeing results from its programs to decrease costs. He also stated that they are working on plans to combat inflationary pressures in the future.

Royal Mail reported an increase in the group’s adjusted operating profit, to 404 Million Pounds for the six-months ended Sept. 26, and a forecast for full-year profits for its UK businesses of approximately 500,000,000 Pounds.

According to the company, it plans to buy back 200 million shares immediately and pay the special dividend of 200 million.

Royal Mail will strive to achieve a net-nil cash position in the coming two years.

($1 = 0.7410 pounds)

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