Employees are in line for an �800 bonus because of increased profits

Reporting its half year results, the company said its ongoing modernisation and cost-cutting plan had delivered an operating profit of �217m ($404m).

The results were for the period to October, and the Royal Mail is now on course for full year profits of �400m.

This will trigger bonus payments of at least �800 to every UK postal worker.

Royal Mail chief executive Adam Crozier said the group was being "transformed" and was on course to complete its turnaround from 2002 when it was losing �1m a day.

Back in May the organisation unveiled a �220m annual profit.

Improving deliveries

In the three months to September, the number of first class letters delivered a day after posting was 92.1%, almost 4% better than the quarter to June.

No-one should doubt or under-estimate the scale of task we have tackled Royal Mail chairman Allan Leighton The Royal Mail's recovery

Royal Mail says this is one of its best performances of the past decade, although still below the target of 92.5%.

However Kay Dixon of consumer group Postwatch said: "Royal Mail had given us to understand a much happier picture this time round."

Second class deliveries achieved 98.6% of their target delivery times, above the benchmark figure of 98.5%.

"As the changes are settling down and people are getting used to new ways of working moral is improving," Mr Crozier told the BBC.

"We want to have good quality people, fairly rewarded, providing a great service to the customer."

Transformation

Mr Crozier added: "Our financial performance is improving all the time and the quality of service figures show we are making improvements there too."

KEY STATISTICS �1m a day profit �217m for the half year 92.1% of first class mail arrives next day Possible �800 staff bonus 98.6% of second class mail arrives on time 7,200 staff left in six months Total reduction of 34,300 Source: Royal Mail

The Royal Mail's letters business made a profit of �26m in the half year, �89m more than the same period a year ago, while losses at Post Office branches fell from �90m to �52m.

"No-one should doubt or under-estimate the scale of task we have tackled," said Royal Mail chairman Allan Leighton.

"We are delivering a massive modernisation programme, restoring profitability and driving up service to customers. Royal Mail is being transformed."

Staff praise

Mr Leighton added that the amount of lost mail has been halved, customer service was improving and postal workers were on a five day week, with most getting at least �300 a week.

"The �400m (full year) target is achievable if everyone in Royal Mail keeps focusing on improving service and efficiency," he said.

Mr Leighton added the �800 Share in Success payment to each member of staff "will be recognition that it's the postmen and women's dedication and commitment that is turning round Royal Mail."

The Royal Mail's turnaround programme has included tough cost-cutting measures such as large-scale job losses and a programme of post office closures.

Around 7,200 workers left the Royal Mail in the six months to September, all voluntarily, taking the total reduction to 34,300 since the renewal plan was launched in 2002.

But Royal Mail says it still needs more flexibility in setting prices.

Your views on whether the Royal Mail's service has improved

Royal Mail has always been far better than any postal service in the world. I have heard people complain because they have had a letter mis-delivered yet never heard anyone say "thank you" for the millions of letters delivered correctly. The best in the world..........Well done to all at RM
andrew andrews, lancs

since two deliveries have been abolished our First delivery s seldom before lunch and often after 6 p.m. it might be a "technical" next day delivery, but pretty useless, for banking cheques or generally dealing with the post. Mis-deliveries are up too, but of course there is no-one to complain to, and in any event it would be rather pointless.
M C Elzas, UK

The unpredictability of the service in Oxford makes it impossible to rely on a service which is effectively a monopoly. Recently the charity YWCA was contacted by a local resident asking us why all our donations were being redirected from our office address to his house. Cheques worth more than �1000 were included in this post. We have yet to have a response to our complaint. They may be about to pay an �800 bonus but my post is still delivered at 10pm on some days and not at all on others. I don't wish to underestimate the task the Royal Mail has been facing and it might be getting better in some places, but the exceptions are inexcusable.
Sally Green, UK

I think it is a bit to early to crow. Having reduced the postal service by 50% by axing the 2nd delivery. By default monies must have been saved at the expense of customer satisfaction and service.

Our business mail is now delivered at 11.30 a.m. whereas before it was delivered at 8.30.am.

The real test for the powers to be, will come when they demonstrate that have grown the business by recovering some market share and not just relying on putting the price of a stamp up by 2pence.
Bill Wilson, UK

We should give a huge round of applause to all the members of the Royal Mail - the postmen and women on the front line, the people working in logistics and the management team. We are all quick to criticise when things go wrong so we should also respond to success with the same level of enthusiasm.

I hope all the members of the Royal Mail enjoy spending their bonuses - they are well deserved.
Paul M, UK

I had a birthday card posted to me on Friday, sent first class from Reading to Nottingham, and it is yet to arrive. Must have been the 1 out of 10 that doesn't get delivered next day. It could arrive in the post today, at 11am when it finally gets delivered. Royal Mail still have some work to do to convince me they have a first class service.
Nicole James, UK

Fantastic news. Despite increased competition and the service obligation to deliver to every address in the UK no matter how remote (that the competitors do not have) the Royal Mail has once again become the best at what it does.
Gary Reaney, England

I am a production manager for a specialist mailing house in the East Midlands region. Although the service provided by Royal Mail has generally been poor over the last two years (failed collections of mail & missed delivery schedules), the last six to eight months has seen a marked improvement. I now have regular contact with a dedicated customer operations manager who has worked extremely hard to help improve both service levels & relationship with our company. Quite frankly, for any faults Royal Mail may have had in the past, who else could offer the same services as Royal Mail for the price? Well done Royal Mail.
Shaun, England

Postal service hasn't improved at all. In fact I have had more parcels "go missing" than ever before. Letters (particularly cheque books) never arriving, parcels partially opened and others taking 6-8 weeks to arrive. And �800 bonuses each? Outrageous!
Neal Reed, Oxfordshire, UK

Certainly do NOT believe this. In my line of work, we mail 2.5Million envelopes per month on behalf of our customers. These figures do not reflect our experience. On a personal note, I mailed out 4 DVDs in Jiffy bags at the same time from the same Post Office. 2 did not arrive at their destinations! I am being forced to use Recorded Delivery which increases Royal Mail revenues. I find �1Million profit per day almost offensive.
Steve Grinstead, England

I still suffer problems with my domestic and business postal services. All contact with Royal Mail to discuss problems has been met with a 'jobs-worth' attitude and a complete lack of understanding of customer service. If putting the cost of a stamp up by 2 pence would guarantee an excellent service, I feel it's a small price to pay! I see no reason why the postal service in this country should not be opened up to the private sector.
Tony Hayes, UK

My postal delivery frequently does not arrive until 4pm or later. I have had 3 items of Recorded Delivery Mail pushed through the door without a signature being obtained, one parcel left on the doorstep in full view of the street and mail intended for a neighbour 3 streets away being delivered to me. Staff at the Sorting Office are rude and surly.

Some DVDs I ordered for my daughter were sent 1st Class and arrived 17 days later. When the sender tried to claim compensation the woman she phoned at Royal Mail Customer Services laughed at her when she said she wanted her money back.

Mail frequently arrives half open as if someone is peering inside to look for money. Collections from post boxes which used to take place 3 times a day now take place only once a day and the collections are frequently late.

Royal Mail is making a profit because it has REDUCED the level of service it offers the customer, cut back on staff and services and now won't even compensate when it fails to deliver. I now no longer trust the Royal Mail and only use them because I have to.
Jan Johnson, United Kingdom

As a former employee of Royal Mail, I am pleased to see that the Company is finally making a profit. However, I can't help feeling that this is at the expense of its workers. With 3000 managers made redundant last year alone, what other drastic measures will be taken in the name of profit?
Claire, UK

The UK continues to have one of the best - if not THE best - postal systems in the world. The concept of actually delivering the vast majority of mail on the following day, for pennies, is better than the US or other major systems. Well done Royal Mail - keep it up !!
John Mapletoft, USA

Depends if "improvement" seems to include only an average of one or two (largish) deliveries per week (in Manchester, not an isolated rural location), at arbitrary times. It seems odd that we get no mail for a week and then a delivery of a dozen items, then nothing... We also regularly exchange misdelivered mail with our neighbours. Fortunately not much of our mail is time-critical, but it does get a little frustrating when waiting for something specific.
Mark, England

Well done Royal Mail. If only they could sort out the length of the queues in their Post Offices. Lets hope they keep the improvements up.
Dan Ames, UK

I believe RM do a good job and considering they have to get up at the crack of dawn in the freezing weather to deliver the post. It may still too early to say, but for me I'm happy with what I get from the postal service. As for the Post Office counters, something needs to be done to the stupid queues you have to stand in and the slowness of them, closing down the post offices isn't a good idea for small villages.
Ben, UK

Is this a joke? The service is mostly dismal, the staff attitude is mostly worse, and I'd pay double not to use this wretched company again.
Dave, UK

Royal Mail's failure to deliver 8% of First Class post on time should be punished by reducing the cost of a 1st class stamp by 8% for the next 12 months. This would reduce the profits made at the expense of broken promises to customers and focus management's attention on improving the service so that 100% of First Class letters are delivered the next day.
Nick, England

Well done Royal Mail. Its great to see the turnaround in such a mammoth organisation. Some critical decisions taken that were needed. There is always room for improvement and by becoming leaner and fitter they can take on any opposition. It used to be a proud and excellent organisation - it can be again.
D Loughlin, UK

The mail service is ok but improvements would be benifical to all businesses and individuals. The break up of monopoly is required.
Jon J Rimmer, UK

Having experienced both local and international mail delivery services in several countries where I have worked over the last 30 years I can confidently say the Royal Mail is way ahead of the field in terms of performance and cost. Nowhere else in the world is the service so prompt and reliable. Yes, there will always be a few percent or letters misdirected or lost but that is inevitable in our imperfect world and anyway, who can claim they never made a mistake when addressing their own letters?
P DeVillez, England