Royal Mail Gets Profit Boost From the Taxman

    Photo by Monica Arellano-Ongpin

    Today, the profits of Royal Mail received a boost from the taxman amounting to £106m as a result of the controversial decision of the postal giant to close its mammoth pension scheme.

    The Royal Mail’s revenue for the first half of 2017 grew two percent, with profit after tax nearly doubling to £168m.

    Moya Greene, the firm’s Chief executive, said that the said results capped “a good start to the year,” adding that “our investment in our business is paying off.”

    The firm’s shares grew more than four percent in early trading.

    Its UK parcels and letters business, the larger of two divisions of Royal Mail, posted flat revenues amounting to £3.6bn, with operating profits dropping by £12m to £247m. GLS, an international arm, continued its “strong” growth with revenue increasing by nine percent to £1.2bn and operating profit rising by 23 percent to £90m.

    Royal Mail is locked in discussion with unions regarding a series of suggested changes to working practices, which include the closure of the “gold-plated” final salary pension scheme of the firm.

    Last month, a 48-hour strike that was the first since the Royal Mail was privatised, was prevented after the High Court ruled that further arbitrated negotiations must take place.

    Today, the 501-year-old firm warned that “industrial relations environment could impact our performance in the second half.”

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