Royal Mail delivers interims on Thursday as headwinds mount


Royal Mail Group PLC has had some mixed reviews recently.

Some in the City reckon that last year’s Covid-inspired parcel boom was a one-off, but others see more long-term structural improvements at play.

UBS expects tomorrow’s interims will contain a mix of good and bad news.

Headwinds will be current labour shortages/increasing wage inflation in the UK and Germany, but evidence of good progress on achieving productivity improvements and managing cost inflation should see the recent share price rally continue.

“The focus will be on September/October volumes and price/mix,” said the broker.

Bin day for Biffa

Biffa PLC (LSE:BIFF) is also releasing its interims on Thursday and the most telling point might be how it is keeping its staff in the face of spiralling wages for HGV drivers elsewhere.

Higher fuel prices will also be an issue but these should be mitigated by some dynamic pricing by the waste group, as well as by continuing high recyclate prices said broker Peel Hunt.

Announcements expected

Finals: Daily Mail and General Trust (LSE:DMGT) (Daily Mail and General Trust (LSE:DMGT)) plc, Euromoney Institutional Investor (LSE:ERM) (Euromoney Institutional Investor (LSE:ERM)) plc, Grainger Plc (LSE:GRI) (Grainger Plc (LSE:GRI))

Interims: Biffa PLC (LSE:BIFF), Charles Stanley (LSE:CAY) (Charles Stanley (LSE:CAY)) Group plc, finnCap Group plc, Halma PLC (LSE:HLMA) (Halma PLC (LSE:HLMA)), Investec PLC (LSE:INVP) (Investec PLC (LSE:INVP)), Jet2 PLC (AIM:JET2) (Jet2 PLC (AIM:JET2)), Mitie Group PLC (LSE:MTO) (Mitie Group PLC (LSE:MTO)), Redcentric pls, Royal Mail PLC (LSE:RMG)

Trading announcements: Close Brothers Group (LSE:CBG) (Close Brothers Group (LSE:CBG)) plc

AGMs: Avingtrans PLC (AIM:AVG) (Avingtrans PLC (AIM:AVG)), Close Brothers Group (LSE:CBG) plc, Eagle Eye Solutions Group PLC (AIM:EYE) (Eagle Eye Solutions Group PLC (AIM:EYE)), Finsbury Food Group (AIM:FIF) (Finsbury Food Group (AIM:FIF)) plc, Ironridge Resources Limited, Litigation Capital Management Limited, Maestrano Group PLC (AIM:MNO) (Maestrano Group PLC (AIM:MNO)), Thorpe plc, JD Wetherspoon Plc (LSE:JDW) (JD Wetherspoon Plc (LSE:JDW))

Economic data: Consumer Price Index (EU), Initial Jobless Claims (US), Continuing Claims (US), Philadelphia Fed Index (US).


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