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Employees are in line for an £800 bonus because of increased profits
The Royal Mail is now making profits of £1m a day and delivering more than nine out of 10 first class letters on time, as it continues to turn itself around.
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.
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 Pos****ch 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."
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.
The postal regulator Postcomm is considering a scheme to raise the cost of a first-class stamp by 2p.
The Royal Mail is now making profits of £1m a day and delivering more than nine out of 10 first class letters on time, as it continues to turn itself around.
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.
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 Pos****ch 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."
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.
The postal regulator Postcomm is considering a scheme to raise the cost of a first-class stamp by 2p.
