Royal Mail owner International Distributions Services PLC (LSE:IDS) will unveil full-year results next Thursday, 23 May as speculation looms over a potential takeover.
Daniel Kretinsky’s EP Group had seen a bid for the postal service rejected in April, though IDS has since hinted a new £3.5 billion offer from the Czech billionaire could be accepted.
Thursday’s results therefore come on the back of expectations the firm will be taken private and leave the London Stock Exchange, Hargreaves Lansdown’s Susannah Streeter noted.
“It’s not too much of a surprise that this bid has materialised given how downbeat sentiment has been towards IDS in recent years,” she added.
Hit by industrial action, IDS had reported a £748 million loss last year, against a £577 million profit in 2022, with the company also struggling to meet six-day-a-week letter delivery obligations.
This was despite a £296 million profit from its GLS parcel delivery wing, which Streeter dubbed “the jewel in the company’s crown”.
“Margin growth has come under pressure though in this part of the business of late, partly due to the insidious effects of inflation,” Streeter noted.
“However, GLS has still been growing revenue and it’s highly likely that EP Group sees plenty of long-term opportunities here.”
IDS has previously guided for breakeven this year.