Price increases and a rise in parcel volumes have contributed to Royal Mail Group’s continuing rise in annual profit and turnover, the firm said today.

Its UK parcels, international and letters (UKPIL) division, which encompasses its Royal Mail and Parcelforce Worldwide brands, saw year-on-year EBITDA before transformation costs jump 45% to £775m for the 53 weeks ended 31 March 2013.

This compared with £533m for the 52 weeks ended 25 March 2013.

Division turnover increased by 6% to £7.6bn (2012: £7.1bn).

Parcel volumes at UKPIL grew 5% on a like-for-like basis, with the group handling 1.08 billion parcels during the period and generating a 13% increase in parcel revenue.

Chief executive Moya Greene added that its Parcelforce Worldwide brand handled 71 million parcels during the year, up from 66 million in 2011/12.

Greene said: “Just over three years ago, our core UK business had significant cash outflows. Now, despite the challenging UK economic conditions, UKPIL contributes the majority of group operating profit.

"Its reported operating profit margin after transformation costs has increased to 3.9% on a like-for-like basis.”

Group adjusted turnover, which includes UKPIL and its continental logistics operation GLS, rose 4.3% to £9.1bn for the 52 weeks ended 31 March 2013, up from £8.7bn in the same period in 2012.

Pre-tax profit also jumped up to £324m for the 53 week period, compared to £201m for the 52 weeks in 2011/12.

Greene added: “We are well positioned to continue to benefit from the structural change to e-retailing, which is driving increases in parcel volumes and to manage the decline in letters. In the early weeks of 2013/14, we have seen similar trends to those seen in 2012/13.”

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