Royal Mail hits all-time low as letter numbers dwindle

By John-Paul Ford Rojas, business reporter
Shares in Royal Mail have sunk to their lowest level since privatisation after it warned that annual profits would be lower than expected - knocking more than ?1bn off its market value.
The warning was prompted by a bigger-than-expected decline in letter volumes and poor productivity performance, resulting in cost savings targets being missed.
That sent shares in the company plunging by 18% on Monday and saw brokers slash price targets for the stock overnight, resulting in a further fall of 8% on Tuesday.The declines meant that Royal Mail's market value had fallen by €1.3bn in less than 24 hours with the share price below 360p.It has not been as low since the government privatised the company in 2013 at an initial offer price of 330p - before the stock jumped to 475p on the first day of trading.
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