Royal Mail doubles profit

Royal Mail said it was now meeting most of its targets, including first class deliveries, triggering staff bonuses as it reported a doubling in year profits yesterday.

Royal Mail, which is to have its core mail business opened up to competition from next year, said in a statement that all workers - including Chief Executive Adam Crozier who has now earned £3.3 million over the past three years - would get a £1,074 bonus as it is now meeting eight of 15 targets. Royal Mail was slated in the media last year when it failed to meet any targets during its first quarter, the three months to end-June.

Royal Mail made £207 million pre-tax profit in the year to March, on turnover up 3.7 per cent at £8.96 billion.

Profit from its day-to-day operations rose to £537 million from £220 million in 2003/04 and a £197 million loss in 2002/03. "Postmen and women have achieved a fantastic turnaround," Chairman Allan Leighton said in a statement. "(But) there is still a huge amount to do. Competition has arrived and customers have a choice".

On February 18 industry regulator Postcomm said Royal Mail's 350-year-old monopoly was to end.

From next year, licensed companies other than Royal Mail will be able to set up collection boxes and collect, transport and deliver any mail, from single letters to bulk mailings.

In the liberalised market Royal Mail will still be required to provide a universal postal service for first- and second-class mail of one delivery and one collection each working day at a uniform price throughout Britain.