Half-year profits at Royal Mail have risen to £173m and the group is trading in line with expectations “despite considerable UK economic and political uncertainty.”
Chief executive Rico Black said: “The UK letter revenue performance in the first half is our best for 5 years. It will also benefit from the general election in the second half. But, the outlook, excluding elections, for the letters business in the UK is challenging.
“People are posting fewer letters and receiving more parcels. We have to adapt to that change.”
He added: “Our transformation is behind schedule. We are investing more because of the industrial relations environment, the general election and Christmas, to underpin our quality of service at this key time. This is likely to impact our productivity for the remainder of the year.”