Royal Mail Posts 30% Fall In Six-Month Profits

Royal Mail's first-half profits have fallen 30% to £116m - hit by redundancy costs and falling revenues.

It blamed higher transformation costs - saying profits would have been flat but for a £94m hit over the six months to 27 September as it continued to make efficiencies and 3,000 staff left the business - a portion of them through voluntary redundancy.

Revenue fell slightly compared to the same period last year, with 4% growth in UK and European parcels offsetting a 4% decline in UK letter revenue.

The company said its full-year outcome was dependent on the crucial Christmas season.

Chief executive Moya Greene said: "We have delivered a resilient performance in the first half, demonstrating our ability to respond to a competitive trading environment.

"We delivered parcel volume and revenue growth in the UK, which continues to be a challenging market. Addressed letter volume decline was at the better end of our forecast range.

"We are driving through a range of product innovations and service improvements at pace, as well as targeting new areas of growth and enhancing our offering."

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