Royal Mail shares drop 8% as competition hits profits

Shares in Royal Mail fell by more than 8% after the company reported a fall in profits amid rising fears over competition from online retailers.

The mail delivery firm reported a 21% slump in profits this morning and warned its parcel delivery business is facing fierce rivalry from online retailers such as Amazon. The consequent fall in its stock price dragged down the wider FTSE 100 index, which was trading 0.3% down at 6,689 by 3pm.     Another major faller in the index was solutions provider Intertek Group, which saw its shares drop more than 7% by the afternoon after it cut full-year forecast.  The FTSE 250 was similarly rocked when MPs voted to reform the 'beer tie' system, where some landlords are obliged to purchase ...