Royal Mail shares plunge after warnings of UK losses

Royal Mail shares plunge after warnings of UK losses

Shares were down as much as 11% at one point

Royal Mail has seen shares plunge to record lows after warning its UK arm could be loss-making next year and it may miss turnaround targets amid the threat of strike action.

Shares in the group tumbled as much as 11% at one stage after cautioning over a "challenging" year ahead as it remains locked in an unresolved dispute with staff that is delaying its turnaround plan.

It revealed the industrial action fears had already hurt demand for parcel deliveries over the crucial Christmas season as some customers switched to rivals.

The group said the row with the Communications Workers Union, together with ongoing Brexit uncertainty, "increases the likelihood" of losses in 2020-21 for its UK letters and parcels business.

Unless it makes "significant progress" on overhaul efforts, the group cautioned it was at risk of missing targets under the plan.

Published: by Radio NewsHub
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