Market's view on International Distributions Services

Published on April 2024

  • There are allegations of insufficient production in comparison to demand, negatively impacting the revenue.
  • Potential risk of re-nationalisation if governmental reforms are not implemented swiftly.
  • Concerns regarding RMG’s ability to become an efficient and profitable entity due to a culture that heavily favors the workforce over shareholders.
  • Criticisms of excessive government subsidies in other sectors, suggesting a misallocation of resources and inefficiencies.
  • Discussions on the detrimental effects of free market capitalism in the UK, attributed to greed, corruption, and excessive workers’ rights.
  • RM is perceived as being unduly influenced by unions and a government that does not understand the industry’s changing dynamics.
  • Public perception issues exacerbated by media bias and public reluctance to pay for services.
  • Instances of counterfeit stamps and the difficulty in tracing their origins.
  • Widespread issues with counterfeit products and the challenges they pose to businesses.
  • The market’s lack of confidence in governmental management of national assets.
  • Suggestions of significant asset value in the company’s pension surplus and property portfolio which could influence its financial health and attractiveness in a takeover scenario.
  • A decline in traditional business areas like letter sending, contrasted with growth in parcels, indicating a shift in business focus that requires operational adjustments.
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