Royal Mail is to make a one-off dividend payment to shareholders after the online shopping boom during the Covid-19 pandemic boosted its parcel delivery business, in a dramatic turnaround of the company’s fortunes. Royal Mail expects to make an adjusted operating profit of £700m for the year to the end of March, more than double last year’s £325m. Since floating on the stock exchange in October 2013, Royal Mail had been struggling with its traditional letters business, which is in decline. However, it has focused on expanding its parcel delivery business, as online shopping soared during the Covid-19 crisis, when many shops have been forced to shut during lockdowns. Hunter said Royal Mail would be a strong contender to regain its FTSE 100 status at the next reshuffle of the index.

Source: The Guardian March 30, 2021 11:14 UTC