Royal Mail has reported a bumper year for profits, shortly before privatisation comes into effect, according to bbc.co.uk.
The mailing company revealed £440 million worth of profits in the year up to 31 March. This is more than double the £152 million profit which the state-owned company made in 2012.
It is thought that the massive leap in profit is down to the fact that online shopping has now become so popular. There have also been recent efforts by the firm to update its services.
The news may convince the government to go ahead with its plan to privatise the service this year. The move is coming despite opposition from unions representing those who work for Royal Mail.
For example, Dave Ward, deputy general secretary of the Communication Workers Union, argued that the Royal Mail should be kept in the private sector. He said, according to dailymail.co.uk: “Improved productivity and modernisation has played a role in these good results. Privatisation isn’t necessary and it would establish the workforce and the good progress being made.”
However, business Secretary Vince Cable has today (24 May) said that there is ‘no alternative’ to privatising the service. Prior to the last two profitable years, Royal Mail had suffered four successive years of losses.