Parent company International Distribution Services (IDS) said the UK business saw profits plunge to £96million in the year to the end of March from £198million over the previous 12 months.

Royal Mail saw annual underlying earnings rise to £5 million, up from £2 million a year earlier, as revenues lifted 2.6% to £8.4 billion.

Royal Mail has seen its revenue jump as it shook off rising employment costs and declining letter volumes.