Home Business News New boss at Royal Mail owner

New boss at Royal Mail owner

by LLB Editor
20th Jul 23 11:10 am

Royal Mail owner International Distributions Services is at a critical juncture and it feels telling the company has appointed the head of its overseas delivery operation GLS to lead the broader group.

AJ Bell’s Danni Hewson said: “Having settled the industrial action which had been dogging Royal Mail’s every move, incoming CEO Martin Seidenberg has some big decisions to make. With strikes no longer clouding the outlook, would now be a good time to consider splitting the two businesses?

“It seems likely GLS could attract a higher market valuation as an individual business, its attractions no longer obscured by the legacy issues facing Royal Mail. The latter include struggles in pushing through efficiency improvements, large pension liabilities and a fractious relationship with its workforce.

“First quarter trading reflects the divergent fortunes of the two businesses and while Seidenberg made the right noises on realising the full potential of Royal Mail, his background may make him more open to any clamour for a permanent break between the two.”

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