Royal Mail Group and Kingfisher in Thursday’s city spotlight

Mail and retail will be the topics of focus on Thursday.

Royal Mail PLC - Royal Mail Group and Kingfisher in Thursday’s city spotlight

Royal Mail Group plc (LON:RMG) is posting the results for the half-year to September 27.

UBS expects adjusted operating profit to come in at £3mln, against the £9mln per consensus forecast, with a loss of £143mln in UK parcels, international and letters, with GLS delivering underlying earnings (EBIT) of £146mln.

The second half is expected to see group EBIT of £81mln, with profits rising to £373mln in 2022.

Investors will focus on updates on the discussions with the unions, the magnitude of the profit improvement compared to past guidance and the stickiness of parcel volumes into financial year 2022.

“The big blot on the copybook is the sharp decline in letter volumes. There has also been an under investment in automation which means that Royal Mail is in many ways playing catch up with the competition, even though it’s in the dominant position as the UK’s universal postal provider,” analysts at Hargreaves Lansdown said.

“Adapting with flexibility isn’t Royal Mail’s strong point, but it will need to be much more nimble to keep abreast of its customers changing needs.”

“Coronavirus costs will have significantly eaten into profits, but Royal Mail’s reputation has arguably been boosted during the pandemic with staff praised for going the extra mile to keep the essential service running.”

Kingfisher eyes another lockdown boost

A trading update from B&Q owner Kingfisher PLC (LON:KGF) on Thursday is likely to be eyed for its forecasts as a second UK lockdown heralds a positive demand shift for the DIY products retailer as a return to remote working gives customers more time to pursue home projects.

With the firm’s outlets designated as essential and thus likely to remain open during lockdown, the closure of other stores will likely draw in more customers, as will its large, car accessible warehouses that offer ample space for socially distanced shopping.

Investors will likely be on the lookout for any updates on initial trading over the new lockdown period, while further ahead they will likely look for any plans on how the firm will spend the £73mln gained from the sale of its Castorama Russia business in early October.

Significant events expected on Thursday, November 19:

Trading updates: Kingfisher PLC (LON:KGF), Close Bros Group PLC (LON:CBG), Headlam Group PLC (LON:HEAD)

Finals: Euromoney Institutional Investor PLC (LON:ERM), Grainger PLC (LON:GRI)

Interims: Royal Mail PLC (LON:RMG), CMC Markets PLC (LON:CMCX), Jet2 PLC (LON:JET2), Halma PLC (LON:HLMA), Charles Stanley Group PLC (LON:CAY), Investec PLC (LON:INVP), Johnson Matthey PLC (LON:JMAT), Mitie Group PLC (LON:MTO), Naked Wines Plc (LON:WINE), Polar Capital Holdings PLC (LON:POLR), SRT Marine Systems PLC (LON:SRT), Syncona Limited (LON:SYNC), LondonMetric Property PLC (LON:LMP)

FTSE 100 ex-dividends to knock 0.32 points off the indexSmurfit Kappa Group plc (LON:SKG), Scottish Mortgage Investment Trust PLC (LON:SMT)

Economic data: US jobless claims, UK CBI Industrial Trends

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...


Crossword Cybersecurity 'delighted' with 25% revenue growth despite...

Crossword Cybersecurity PLC's (LON:CCS) Mary Dowd talks to Proactive London about their 25% revenue growth growth plan. In a trading update for the year to December 31, 2020, the company said overall revenues are expected to show an increase of 25% to £1.6mln. Dowd goes on to explain the...

2 hours, 16 minutes ago

3 min read