Annual profits at Royal Mail rise to £324 million in the face of privatisation, as the UK government moves forward with the planned sell-off.

Annual pre-tax profits have risen by as much as 60 percent, from a total of £201 million the same time last year, as markets respond to the government’s privatisation plans for the postal service.

The government is looking to raise capital and modernise the UK’s postal infrastructure by looking to place the mail service on the London stock exchange within a year.

The government required the Royal Mail to show signs of growth and strong performance as part of the requisites for privatisation.

Royal Mail have undergone a programme of transformation including job redundancies and a focus on modernisation, as the mail service seeks to compete against private postal organisations and popularity of electronic mail services.

Royal Mail chief executive, Moya Greene, said of the profit increase: “Our strategy is delivering. The transformation of Royal Mail is well under way."

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Royal Mail: profit & privatisation