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Royal Mail (LON: RMG) of the United Kingdom announced on Thursday that it would return 400 million pounds ($539.84 million) to shareholders after forecasting greater annual earnings in its UK operations following a good first half.
Since the epidemic began, the company, one of the world’s oldest postal services, has been able to turn a corner as more people shop online, bolstering its parcel delivery business.
Analysts have cautioned, however, that rising costs could eat into Royal Mail’s profit margins. “We’re seeing the benefits of our programmes to reduce costs, and are developing our plans to address inflationary pressures which will impact next year and beyond,” Chief Executive Officer Simon Thompson said.
Royal Mail announced a 404-million-pound increase in group adjusted operating profit for the six months ended Sept. 26 and anticipated a full-year profit of around 500 million pounds for its UK division.
The business said that it will buy back 200 million pounds worth of shares beginning immediately, with the remaining 200 million pounds paid out as a special dividend. Over the following two years, Royal Mail intends to achieve a net nil cash position.
Story by : Norvisi Mawunyegah