(Alliance News) - Shares in Royal Mail PLC jumped on Wednesday after the London-based firm said it expects to report revenue for the year to March 31 up by more than GBP900 million year-on-year.
The stock jumped 4.0% to an intraday - and new 52-week - high of 488.30 pence in London, having been lower on the day ahead of the late morning announcement. Royal Mail shares were trading 1.5% higher at 480.70 pence each just before midday. They are up more than 40% so far in 2021.
The FTSE 250-listed letter and package delivery firm said it expects adjusted operating profit for its current financial year to be around GBP700 million.
For the year to the end of March 2020, Royal Mail reported revenue of GBP10.84 billion and adjusted operating profit of GBP325 million.
Royal Mail noted that its recent letter volume and revenue trends have been "more robust" than anticipated, with Advertising, Business and Stamped Mail all performing above its previous expectations.
Growth in parcels in the UK has remained strong but broadly in line with expectations. The performance of international arm GLS also remains in line with prior expectations.
Royal Mail highlighted that it is nearing the completion of its management restructuring programme, announced in June 2020, with the charge associated with this now anticipated to be GBP90 million compared to the original estimate of GBP140 million.
"We will deliver the targeted savings of GBP130 million annually, with around GBP15 million realised in the current financial year," Royal Mail said on Wednesday.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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