The postal and delivery services group has two operating businesses: Royal Mail in the UK offering letter and parcel services; and international delivery business GLS which currently operates across 40 countries and nation states. 

Royal Mail plc was the holding company, but the duplicate name had the potential to cause confusion.

Royal Mail announced its plans to change the topco name to International Distributions Services (IDS) in a trading update over the summer, to better reflect the group structure of two separate companies.

“Our intention is to have clearer financial separation with no cross subsidy, reflecting the increased importance of GLS to the group and our position in the wider logistics and distribution markets,” the business stated at the time. 

There is no impact on the trading brands.

However the group has also flagged the potential for radical change, such as splitting the businesses, if the current industrial relations issues at Royal Mail are not resolved. 

“In the event that significant operational change within Royal Mail in the UK 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 business is currently facing 19 days of industrial action in the run-up to Christmas. The strike dates and details are outlined here. 

Royal Mail is also the designated provider of the Universal Service Obligation (USO), the one price goes anywhere postal service across the UK.

IDS’ share price has lost more than 60% of its value this year. Shares were down 2.4% at 202p in early trading today (5 October). The 52-week high is 531.4p, low: 177.15p.

Last month the group took drastic action in an attempt to break the impasse over the ongoing industrial action by involving ACAS, and has also told union the CWU that it plans to serve notice on a number of historic agreements.