The Royal Mail has doubled its operating profits to £177m in the past six months, compared with a year ago. It has attributed the strong performance to cost cuts, the introduction of newer services and improved efficiency measures.
Chairman Allan Leighton says the “good results” demonstrate Royal Mail’s progress despite the tough economic climate and competition from its commercial rivals.
Royal Mail has however seen a decrease of over five million letters in its volume. It is also expected to shut approximately 2,500 post offices by the end of this year.
Leighton, its longest serving chairman, will step down next March after seven years with the group. The Government has already begun a search for his replacement.
The postal services group also says that it gained from the stock market falls that pushed its pension deficit from £2.9bn earlier this year to £4bn in September.
Royal Mail had earlier expressed concerns over the downturn in the ad market, as well as the transition of advertising into the digital space.