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| Royal Mail profits almost double | Royal Mail profits almost double |
| (20 minutes later) | |
| Royal Mail has seen its annual profits almost double, as all four parts of the business went into the black for the first time in 20 years. | Royal Mail has seen its annual profits almost double, as all four parts of the business went into the black for the first time in 20 years. |
| The state-owned firm made a group-wide operating profit of £321m in the year to 31 March, up from £162m a year ago. | The state-owned firm made a group-wide operating profit of £321m in the year to 31 March, up from £162m a year ago. |
| This came after its main letter delivery business and its Post Office arm returned to profitability. | This came after its main letter delivery business and its Post Office arm returned to profitability. |
| The government is continuing plans to part-privatise the Royal Mail, saying outside funds are vital for its future. | The government is continuing plans to part-privatise the Royal Mail, saying outside funds are vital for its future. |
| Our people have delivered strong financial results and high quality customer service across all our businesses in the face of extremely challenging trading conditions Chief executive Adam Crozier class="" href="/1/hi/business/7909911.stm">The Royal Mail's pension problem | |
| The government says one key reason for the need of outside investment is the extent of Royal Mail's pension deficit. | The government says one key reason for the need of outside investment is the extent of Royal Mail's pension deficit. |
| According to Royal Mail's latest figures, this has more than doubled over the past year to £6.8bn. | According to Royal Mail's latest figures, this has more than doubled over the past year to £6.8bn. |
| It also warned that mail volumes declined 5.5% during the 12 months, and predicts they will fall by a further 10% in the current financial year due to the recession and the continuing growth of electronic communications such as e-mail. | It also warned that mail volumes declined 5.5% during the 12 months, and predicts they will fall by a further 10% in the current financial year due to the recession and the continuing growth of electronic communications such as e-mail. |
| "Today's figures show that while the headline profits are in the millions, the pensions deficit is in the billions and confirms that the Royal Mail remains in a precarious financial position," said Business Secretary Lord Mandelson. | |
| "With today's results confirming that the pensions deficit has doubled this year and that mail volumes are expected to fall by as much as 10% every year, the need for urgent modernisation and fundamental reform is crystal clear." | |
| Labour rebels | Labour rebels |
| The government wants to sell off a 30% stake in Royal Mail, but ahead of a planned Commons vote on the bill next month, it is having difficulty winning over almost 150 Labour rebels. | The government wants to sell off a 30% stake in Royal Mail, but ahead of a planned Commons vote on the bill next month, it is having difficulty winning over almost 150 Labour rebels. |
| One of the bidders for a stake in Royal Mail is likely to be the privatised Dutch postal group TNT. | One of the bidders for a stake in Royal Mail is likely to be the privatised Dutch postal group TNT. |
| Unions at the Royal Mail are also strongly opposed to the part-privatisation plans. | Unions at the Royal Mail are also strongly opposed to the part-privatisation plans. |
| Group-wider annual revenues at Royal Mail were up almost 2% to £9.6bn. | Group-wider annual revenues at Royal Mail were up almost 2% to £9.6bn. |
| On a pre-tax basis, Royal Mail made an annual profit of £49m, compared with a loss of £77m a year earlier. | |
| Royal Mail chief executive Adam Crozier said the firm had made a "huge effort" to modernise and improve its efficiency. | Royal Mail chief executive Adam Crozier said the firm had made a "huge effort" to modernise and improve its efficiency. |
| Annual profits at Royal Mail's letter delivery unit totalled £58m, compared with a loss of £3m for the year before. | Annual profits at Royal Mail's letter delivery unit totalled £58m, compared with a loss of £3m for the year before. |
| The Post Office business made a profit of £41m, compared with a £34m loss a year earlier. | The Post Office business made a profit of £41m, compared with a £34m loss a year earlier. |
| "Our people have delivered strong financial results and high quality customer service across all our businesses in the face of extremely challenging trading conditions," said Mr Crozier. | "Our people have delivered strong financial results and high quality customer service across all our businesses in the face of extremely challenging trading conditions," said Mr Crozier. |