ROYAL Mail is a 500-year-old iconic British institution that we entrust to deliver our letters and parcels to their destinations safely.
At the end of May 2024, the postal service was bought by a major investor— here’s everything you need to know.
Clik here to view.
Who owns Royal Mail?
Royal Mail is owned by private shareholders.
After it started operating in 1516, Royal Mail remained publicly owned until 2011, when the coalition government passed the Postal Services Act, allowing 90% of the service to be privatised.
This initial selling process began in 2013 and finished in 2015.
Following privatisation, Royal Mail became part of International Distributions Services (IDS), which also owns Parcelforce and Logistics Systems.
The biggest shareholder after the sale was Daniel Křetínský — a Czech billionaire whose Vesa Equity Investment, which is part of the EP Group, then controlled 27.6% of the company.
In May 2024, Křetínský’s EP Group made a formal offer for the business — the deal will now be considered by regulators and shareholders will vote on it at the firm’s next annual general meeting in September.
Our business has the potential to become a leading international logistics player
IDS chairman Keith Williams
The company’s parent firm confirmed that its branding and UK headquarters would remain as part of the deal.
It also said it would uphold it’s promise to “one-price-goes-anywhere” first class post six days a week, and added that all employment rights would be protected.
IDS chairman Keith Williams said: “Our business has the potential to become a leading international logistics player.
“Both the IDS board and EP are acutely aware of their responsibilities to IDS and particularly to the unique heritage of Royal Mail.
“It has obligations as the designated Universal Service Provider of postal services in the UK.
“The IDS Board has negotiated a far-reaching package of legally binding undertakings and commitments.
“They provide our customers, employees and broader stakeholders with important safeguards.
Clik here to view.
“These cover the one-price-goes-anywhere Universal Service Obligation — including First Class letters still delivered six days a week.
“It also secures the financial stability and maintenance of the IDS Group including Royal Mail.
“It will maintain employee benefits and pensions, and ensure Royal Mail remains headquartered and tax resident in the UK.”
If approved the deal means that the EP Group would face the challenge of a decline in demand for letters, as well as a rise in competition for parcel deliveries.
Who has shares in Royal Mail?
Czech billionaire Křetínský‘s Vesa Equity Investment (part of the EP Group) is the largest shareholder in Royal Mail.
Here’s the full rundown of the top 10 biggest investors in the company according to in.marketscreener.com:
- Vesa Equity Investment SARL owns 27.52% — worth £893million
- Schroder Investment Management Ltd. owns 7.837% — worth £254million
- RWC Asset Management LLP owns 6.482% — worth £210million
- UBS Asset Management (UK) Ltd. owns 6.286% — worth £204million
- Royal Mail Share Incentive Plan owns 5.535% — worth £180million
- Threadneedle Asset Management Ltd. owns 5.179% — worth £168million
- Jupiter Asset Management Ltd. owns 4.313% — worth £140million
- The Vanguard Group, Inc. owns 2.581% — worth £84million
- BlackRock Advisors (UK) Ltd. owns 2.255% — worth £73million
- Dimensional Fund Advisors LP owns 2.078% — worth £67million
How much does the Royal Mail make?
In 2024, the release of full-year figures for IDS was delayed after auditor KPMG requested more time to complete its assessment.
Royal Mail recorded an adjusted loss of £348million.
When combined, the group’s adjusted loss fell to £28million — against a £71million loss in 2023.
Up to March 31, 2024, IDS group reported a statutory profit of £26million.
Statutory profit is the profit a company is required to report by law, including one-off payments and exceptional gains etc — which companies might prefer to exclude from their own headline figures.
When did postal workers go on strike?
There were 18 days of strike action in 2022, and the company was keen to avoid a further strikes which would could them many millions.
IDS said the business had lost £295million in the nine months to the end of December 2022.
This was down to the strike action in part, but also because of the continued fall in the number of letters being sent and “weaker retail trends”.
Royal Mail announced that employees represented by the Communication Workers Union (CWU) had voted in favour of further strike action in February 2023.
However, strikes for February 16 and 17 were cancelled and the company was subsequently locked in negotiations with the union until July 2023, when workers agreed to a three-year pay deal.
In a statement on their website, the company said: “Royal Mail is pleased that members of the Communication Workers Union (CWU) have voted in favour of the Royal Mail/CWU Business Recovery, Transformation and Growth Agreement.
“75.84% of eligible CWU members participating in the ballot voted in favour of the agreement.
“The agreement provides Royal Mail a platform for the next phase of stabilising the business whilst continuing to drive necessary changes.
“The changes in the agreement are designed to be good for customers, increasing our ability to improve services and quality; good for employees, retaining job security and giving people a pay rise; good for the environment, reducing the company’s reliance on domestic air, further reducing carbon emissions; and supporting the long-term sustainability of the business.”
“We are now working with the CWU to deliver the transformation activity in the agreement and implement the changes agreed.”
Who is Czech billionaire Daniel Kretinsky?
Clik here to view.
DANIEL Kretinsky is a major investor in West Ham, Royal Mail and Sainsbury's.
The “Czech Sphinx” made his money through his energy firm company EPH, which has expanded into Britain.
EPH owns four UK power plants: Eggborough in North Yorkshire, Lynemouth in Northumberland, Langage in Devon and South Humber Bank in Lincolnshire.
In 2020, the law graduate increased his shares in Royal Mail – amassing a £250million stake in the historic FTSE250 company.
A month later, his holding company Vesa Equity Investment Sarl became the second largest shareholder of J Sainsbury, when they acquired a ten per cent stake in the supermarket chain.
Kretinsky also struck deals to own US trainer store Foot Locker, as well as American shopping centre Macy’s.
He is now set to be the owner of Royal Mail following his successful takeover bid.
Although he keeps his personal life private, Kretinsky is reportedly dating Olympic showjumper Anna Kellnerova, who is 22 years his junior.