Mr Crozier said that the profits were before pay rises and additional pension contributions, and there would be additional costs because of the industrial action.

"We have to make operational changes," Mr Crozier added. "Our market is being opened up to competition by the regulator over the next two to three years and unless we make these changes and get ourselves into profit and get ourselves fit to compete then we won't have the potential for a successful future."

He went on to say that the Royal Mail would maintain its commitment to the universal service obligation which ensures everyone is entitled to deliveries irrespective of where they live.

Price rise

Any increase in profits won't have come from an improvement in productivity or efficiency, but from the recent one penny rise in the cost of a stamp.

The company has come a long way in the past couple of years.

Losses last year amounted to £611m, and before that, the company was in the red o the tune of £1.1bn.

Business plan

The company is pressing ahead with 30,000 job cuts and are to scrap the second delivery which should see the company's fortunes improve.