Ofcom fine adds to Royal Mail's cashflow woes, says Peel Hunt
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Royal Mail, owned by International Distribution Services PLC, has been fined £10.5 million by Ofcom, exacerbating its cashflow issues. Peel Hunt analysts predict cash outflows for Royal Mail in the 2025 and 2026 financial years.
December 13, 2024 | 11:15 am
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International Distribution Services PLC, owner of Royal Mail, faces increased financial pressure due to a £10.5 million fine from Ofcom. Analysts predict cash outflows in the coming years.
The £10.5 million fine from Ofcom directly impacts Royal Mail's financial health, which is owned by IDS. This adds to existing cashflow issues, with analysts predicting further cash outflows in the next two financial years. This negative financial outlook is likely to impact IDS's stock price negatively in the short term.
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