The share price of Royal Mail has risen again this morning (January 24th) following the release of the firm's latest financial results.
Stocks in the company have been steadily rising in value since its privatisation three months ago and Royal Mail has announced today that parcels have helped it to record a strong performance.
High demand for its services over the busy Christmas period was cited by the firm as one of the reasons for its improved results, but they are likely to lead to more accusations that the government sold the taxpayer short when it valued Royal Mail shares at 330p.
Just three months after the controversial sale of Royal Mail, its shares are now closing in on the 600p mark, meaning they have almost doubled in value over the course of just 12 weeks.
Although parcel deliveries are making up an increasingly important part of Royal Mail's business at present, the firm revealed that revenue for its letter delivery service was down three per cent in the same period, with the public's continuing reliance on social media and email blamed on the drop in letter sending.
Royal Mail argued in a statement that the performance revealed in its latest financial results is in line with its expectations. The government has regularly defended its part in the sale of stocks in the company, claiming it was the right time to privatise Royal Mail.
The government has retained a 30 per cent stake in the company, but has still come under fierce attack for not setting the share price of Royal Mail higher on its flotation last year.
Following the release of the new financial results by Royal Mail, its share price rose again in the early stages of trading. By 08:19 GMT, stocks were around one per cent up for the day, though by 08:43 GMT these losses had been erased and the share price was flat for the session.
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