Analyst Views: What did you think about Royal Mail’s results?

 
Michael Bow
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RISHIKA SAVJANI | BARCLAYS
Competitive pressures in parcels and the potential impact from Whistl’s expansion into direct delivery remains, but strong cost discipline has supported, and is likely to continue supporting, margin expansion. While there are no changes to guidance, the company has reaffirmed its commitment to cost discipline.

ROBIN SPEAKMAN | SHORE CAPITAL
UK parcels is clearly tough with a performance in both volumes and revenues that we believe to be below the underlying market performance; volumes grew by just two per cent with revenues down one per cent reflecting mix. For us, the focus is on cost management and thus cash generation.

RICHARD HUNTER | HARGREAVES LANSDOWN
Having completed its first full year as a listed company, Royal Mail is now facing the harsh realities with the initial share price euphoria having waned. The quiet emergence of Amazon in the parcels space, already a fiercely competitive arena, could become a medium-term threat.

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