Royal Mail (IDS) Shares Rallied 12.5% in June. Will This Continue?

The Royal Mail share price, International Distributions Services PLC (LON: IDS), has risen 12.54% in the past month amid a shift in investor sentiment that stopped the massive decline witnessed in May. The stock has since recouped a substantial amount of its losses.

There have been minimal announcements from Royal Mail ever since the company signed a pay agreement with the Communication Workers Union (CWU) in April 2023. The most significant development since then was the news that the company’s CEO, Simon Thompson, would leave the firm later this year.

Still, Royal Mail is in a lot of trouble given that it continues losing money daily due to its legacy operating systems and the lack of adoption of modern working methods, such as automation of specific tasks currently being done slowly by its workers as opposed to machines. 

The company’s outgoing CEO had been trying to force some of these much-needed changes onto the CWU, which has opposed most, if not all, of the proposed changes. The company remains a loss-making entity and might need government bailouts to remain operational. 

Given the extra costs associated with the same, Royal has been fighting to remove its mandate to deliver letters on Saturdays. Still, the UK government has rejected this proposal numerous times, saying that Royal Mail must continue honouring its universal service obligation. 

Earlier today. Royal Mail releases statistics about the rising number of its staff that have been attacked by dogs in the past year to March 2023 to raise awareness on the impact of people keeping their dogs unleashed and unsupervised. 

The number of posties attacked by dogs rose to 1,916, an almost 15% increase from the previous year. The company noted that increased dog ownership in the UK could have driven the increase in dog attacks. The report comes at the start of Dog Awareness Week, which encourages responsible dog ownership.

Royal Mail remains a troubled company, but its GLS International counterpart remains profitable. Hence, I wouldn’t be surprised to see the two companies separated in future. 

*This is not investment advice. 

Royal Mail (IDS) share price. 

The Royal Mail (IDS) share price has risen 12.54% in the past month. Will it keep rising?