Royal Mail has seen its almost double half-year operating profits increase as a newly privatized company, helped by growth in parcel business.
This year’s profit was reportedly helped by £35m VAT credit and £50m less spent on restructuring the business.
Pre-tax profits were £233 million for the six months to September, higher from £94 million last year, excluding special items.
Royal Mail, however, said a one-off windfall leading to pension reform improved overall pre-tax earnings to £1.58 billion.
A 60% share in Royal Mail was sold on the London’s stock market last month, which prompted allegations that the government sold the company too cheaply.
The shares went on sale at 333p each, but immediately jumped in value.
Business Secretary Vince Cable will appear in a select committee conference over concerns the postal service was underpriced.
Royal Mail’s performance depends heavily on increasing parcel revenues, boosted by shipments of online purchases, to make up for decreasing letter deliveries.