Riannon Posted October 14, 2013 Share Posted October 14, 2013 only reason the company has gone up in value is precisely because of the privatisation...difficult to prove otherwise.. Once the yolk of public sector bureaucracy is removed the company has a chance of competing in the big wide world, but only if they can stop the unions from thinking it is still a public sector company. Link to comment Share on other sites More sharing options...
Rob_1 Posted October 14, 2013 Share Posted October 14, 2013 Out of interest, how many shares were employees being given? A £1200 profit implies about £3600 initial investment, and private investors were all limited to £750. 10% of the company, so £2200 at launch and worth around £3000 at present. That's irrelevant though as we can't sell them for 3 years minimum or 5 years if we don't want to pay tax and NI on them. And we were guaranteed to get any amount of extra shares we wanted to buy up to £10,000 - unfortunately very few posties have that sort of spare cash, but you can bet your bottom dollar all the senior managers did. ---------- Post added 14-10-2013 at 22:20 ---------- Once the yolk of public sector bureaucracy is removed the company has a chance of competing in the big wide world, but only if they can stop the unions from thinking it is still a public sector company. The only way RM will be able to compete in the future is the reduce the USO, so either rural areas will get fewer or no deliveries or the number of delivery days will be reduced for the whole country. You seem to rate RM alongside the NHS for instance that has thousands of pen pushers. 50,000 RM jobs have already gone in the last 10 years, in that time the number of UK addresses has increased from 27 to 29 million. Believe me there is very little excess left to cut, that's why the service will start decreasing as soon as bottom line profit lowers. Link to comment Share on other sites More sharing options...
Riannon Posted October 14, 2013 Share Posted October 14, 2013 The only way RM will be able to compete in the future is the reduce the USO, so either rural areas will get fewer or no deliveries or the number of delivery days will be reduced for the whole country. You seem to rate RM alongside the NHS for instance that has thousands of pen pushers. 50,000 RM jobs have already gone in the last 10 years, in that time the number of UK addresses has increased from 27 to 29 million. Believe me there is very little excess left to cut, that's why the service will start decreasing as soon as bottom line profit lowers. I suppose if you went to work in the private sector for a while you would know the difference. The workforce will either have to start performing like they do at DHL etc or the company will whither on the vine along with your shareholding. Link to comment Share on other sites More sharing options...
avidcameron Posted October 14, 2013 Share Posted October 14, 2013 Once the yolk of public sector bureaucracy is removed the company has a chance of competing in the big wide world, but only if they can stop the unions from thinking it is still a public sector company. I think you mean the yoke- a wooden beam used to transfer power from a draft animal to a plough or cart!The unions will sort out the management,do not worry. PS Sorry to make an eggsample of your spelling(yolk)! ---------- Post added 14-10-2013 at 21:49 ---------- I suppose if you went to work in the private sector for a while you would know the difference. The workforce will either have to start performing like they do at DHL etc or the company will whither on the vine along with your shareholding. Whither means where(ie a direction)whereas wither means to shrivel up. Link to comment Share on other sites More sharing options...
Manlinose Posted October 15, 2013 Share Posted October 15, 2013 not that I know one single thing about setting an IPO share price - maybe there's some legal bits and pieces to it that govern the price???? there are all sorts of legal hoops to jump through, but the setting of the initial price is as much finger in the air as it is anything else they usually set a range between which the initial price will be (i.e between 275p and 330p) - this gives them a bit of wriggle room and gives an indication of how much it might cost to those wanting to invest i think once the range has been announced they can't go above it so they won't always know how much demand there is going to be in advance there are people with big brains in the various stockbroking and advisory firms who value businesses for a living - but you can instruct three different firms and get three very different valuations so I do have some sympathy for poor old vince cable - he can only rely on the advice he has been given - but he could have sought other opinions before announcing the sale, or he could have queried the estimated valuation in a bit more detail part of the problem is that the ministers and civil servants involved don't have much knowledge, experience or expertise and they have to rely on professional advisers who charge huge fees and don't always have the same motivations as the government Link to comment Share on other sites More sharing options...
alchresearch Posted October 15, 2013 Share Posted October 15, 2013 Anyone who got £750 worth, their current value is £1,103.22 Link to comment Share on other sites More sharing options...
Rob_1 Posted October 15, 2013 Share Posted October 15, 2013 I suppose if you went to work in the private sector for a while you would know the difference. The workforce will either have to start performing like they do at DHL etc or the company will whither on the vine along with your shareholding. And I suppose you'd need to actually work at RM to have any clue what you're talking about. Dozens of hours of unpaid overtime is worked just at my office every week. Which courier company do you work for? Link to comment Share on other sites More sharing options...
eastbank Posted October 15, 2013 Share Posted October 15, 2013 postie in pub...having a nice holiday with his windfall.... Link to comment Share on other sites More sharing options...
geared Posted October 15, 2013 Share Posted October 15, 2013 I've heard different. The workers can't sell their free shares for 3 years - and when they do they pay a penalty. They have to wait 5 years to be able to sell without penalty. Link to comment Share on other sites More sharing options...
Nagel Posted October 15, 2013 Author Share Posted October 15, 2013 I've heard different. The workers can't sell their free shares for 3 years - and when they do they pay a penalty. They have to wait 5 years to be able to sell without penalty. Meanwhile they get a regular dividend? I've heard 6% mentioned which is a big return, more than you could make on any savings account. Probably that 6% is reduced now since the share price is so much higher than anticipated, but still it's free money. Link to comment Share on other sites More sharing options...
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