Royal Mail expects UK parcels and letters business to be loss-making due to coronavirus

The delivery giant said it expects to meet its forecasts for the financial year ending March 31, but held off on a dividend payout and suspended guidance for the next year.

Royal Mail chief executive Rico Back said: “We are focused on protecting our people, company and the communities we serve during this unprecedented crisis. We are putting the health and well-being of colleagues and customers first.

“At the same time, we are delivering the parcels and letters that are a lifeline for those who cannot leave their homes.

“We are entering a period of significant uncertainty in a good financial position. We have a strong balance sheet.

“We have substantial levels of liquidity and low levels of debt. We are taking immediate steps to further reduce our costs and protect our cash flow.”