Profit rise to pave way for Royal Mail float
Royal Mail boss Moya Greene is ready to deliver on plans for the most high-profile privatisation since the railways nearly 20 years ago.
Separate reports over the weekend suggested that Royal Mail will unveil a surge in its half-year profits tomorrow, a key proviso of a flotation in the third quarter of next year, and that the Government is ready to start talking to potential City investors.
A London Stock Exchange listing could value Royal Mail at as much as £4bn, meaning it would immediately gatecrash the FTSE 100 index of the country's biggest companies.
Despite sales of £9.5bn, Royal Mail has often struggled to make a profit, particularly in its core Parcels, International, Letters division.
However, Ms Greene, right, has slashed jobs and has made sure that Amazon became Royal Mail's biggest client as part of a root-and-branch restructuring that the Canadian has undertaken since joining Royal Mail two years ago.
Ministers are said to have approved a roadshow of major investment firms in the new year. The Government has also made a commitment to letting employees buy shares as well as making them easily available to the public.
UBS and Barclays are advising the Government and Royal Mail respectively.
Postal unions are set against privatisation, though the Post Office would not be part of the flotation.
Strewth mate. Aussies wave goodbye to Britain as it becomes too pricey to stay
World news in pictures
X marks the spot: The find that could rewrite Australian history
At least 91 feared dead including 20 children as massive tornado rips through Oklahoma
David Cameron offers civil partnership review and seeks to smooth relations with angry activists as gay marriage Bill clears major hurdle
- 1 Austerity has hardened the nation's heart
- 2 Tottenham to smash pay scale with £150,000-a-week contract in attempt to tie Gareth Bale to club
- 3 Strewth mate. Aussies wave goodbye to Britain as it becomes too pricey to stay
- 4 Be more professional! GCHQ staff rapped as WikiLeaks founder Julian Assange reveals messages that he says point to 'fit up'
- 5 Join Ryanair! See the world! But we'll only pay you for nine months a year
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Win anything from gadgets to five-star holidays on our competitions and offers page.
iJobs Money & Business
£500 per day: Orgtel: A top tier banking client urgently requires Finance Busi...
£425 - £550 per day: Orgtel: Senior Finance Project Manager - £550 - Bristol -...
£150 - £250 per day: Orgtel: KYC Analyst - London - Banking - £150-250/day C...
£500 per day: Orgtel: A top tier banking client urgently requires Finance Gove...