Royal Mail could post a bumper results package | Business

Royal Mail shares hit their highest level in 18 months after analysts at JP Morgan said that this year’s profits would be handsomely above City predictions.

For the 12 months to the end of March, the consensus in the Square Mile is that the privatised postal group will turn an operating profit of about £50 million. JP Morgan had thought that figure wouldn’t be too far off that, but it has changed its tune as England heads into a second lockdown ahead of the Christmas shopping season. Now it estimates that Royal Mail’s operating profit will be closer to £179 million.

“The primary change in forecasts is on parcel volume, with Royal Mail’s previous guidance expecting a material slowing in the second half, which we