Royal Mail posts strong rise in profits as parcels improve

Royal Mail’s annual profits have jumped 25% thanks to better-than-expected growth in its parcel delivery business. Parcel deliveries rose 9% thanks to shoppers’ insatiable appetite for online shopping, although the number of letters posted fell by 6%. Bosses put the rise in parcels down to upgraded computer systems, which allow the packages to be sorted faster. Pre-tax profits rose to £335m in the year to 26 March from £267m, while revenues grew 5.7% to £9.8bn. Chief executive Moya Greene said: “We have made good progress against all of our strategic priorities. This has been a more challenging period for UK businesses and we have come through it well.”