Royal Mail Profits Up

Operating profits at Royal Mail grew by 4% in the six months proceeding September, it was confirmed today.

Profits during this period were valued at £184m and the business injected around £300m into pension funds over this time, which is still expected to hit a deficit of over £10bn when revalued.

When the shortfall was assessed three years ago it stood at around £3.4bn.

Half-year revenues at Royal Mail have dropped by £73m to £4.58bn.

This has been blamed on falling demand for postal services, coupled with the impact of the economic recession.

Royal Mail suggested its mail volumes have dropped by around three million everyday since last year.

Chief Executive Adam Crozier said growth in operating profits could be attributed to the implementation of modernisation measures.

"Everyone working the hours for which they are paid, working flexibly and using new equipment we're investing in... have helped drive efficiency and offset the effects of volume decline," he said.

Unions have fervently opposed Royal Mail's £2bn modernisation proposals, and staged several walk-outs earlier this year in protest at the changes.


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