Achal Kumar's questions to Royal Mail plc/ADR (ROYMY) leadership • Q2 2024
Question
Asked about progress in regaining market confidence post-strikes, the options for raising fresh cash if the business recovery falters, and the rationale for paying a dividend amidst a cash outflow.
Answer
Executives stated they are already winning back significant customer volumes and are focused on 'walking the talk' with quality improvements. They are actively looking at ways to generate liquidity across the group to provide flexibility. The decision to pay a 'modest' dividend from GLS is to provide a return to shareholders from the group's successful business, signaling confidence and discipline, rather than making investors wait for the full Royal Mail turnaround.