4th Oct 2022 08:21
(Alliance News) - Royal Mail PLC on Tuesday confirmed its name has changed to International Distributions Services PLC.
The FTSE 250 constituent said the change has now taken effect.
In July, Royal Mail said the move would reflect the importance of its GLS distribution unit, which the company said it has become "increasingly" reliant on.
"The board has always maintained that there should be no cross subsidy in the group and recognises the need to address improvements in Royal Mail's performance quickly. In the event that significant change within Royal Mail is not achieved, the board will consider all options to protect the value and prospects of the group, including separation of the two companies," the company said in July.
GLS reported revenue growth during the first quarter ended June, while the eponymous Royal Mail unit saw a double-digit decline.
It is that sort of underperformance which may prompt the parent to mull a separation.
The Royal Mail division is its UK-focused one, delivering letters and parcels, and includes Parcelforce Worldwide. GLS is its international operation, based in Oude Meer, Netherlands and working across the US, Canada and Europe.
International Distributions Services shares were up 3.1% at 202.40 pence each on Tuesday morning in London.
By Xindi Wei; [email protected]
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