Irish State postal service, An Post, recorded an after-tax profit of €75.7m for 2006, resulting in part from exceptional profit on the sale of the former parcel hub site on Dublin’s Naas Road.

Turnover increased by €65.9m (8.8 per cent) to €818.8m reflecting a strong sales drive and 4 per cent growth in core mails revenue, mainly in the bulk mail sector.  While the basic letter tariff remained unchanged at 48c in 2006, rate increases for certain mails products combined with volume growth and a buoyant economy to increase turnover.

Expenditure increased on fleet renewal, fuel and security and an operating profit of €14.7m was achieved for the year. 

New payment agreements with overseas trading partners increased revenue on incoming international mail while internet-generated traffic, as well as increasing volumes from the home countries of non-national communities, increased the volume of incoming international mail packets by 14 per cent.

Retail network revenue increased by 3.8 per cent with strong growth recorded for services such as BillPay, Western Union and Mobile Phone Top-ups.  More than 80 per cent of all passport applications and renewals are now transacted through An Post’s Passport Express service.

Speaking after the company’s AGM at the GPO today, Chairperson Margaret McGinley said that 2006 was a year in which An Post’s financial and commercial improvements were consolidated: “There has been a significant turnaround in An Post’s performance since the Board approved a far-reaching Strategic Recovery Plan just four years ago.  The key objective of restoring the financial stability of the company has been achieved, with profits recorded for the third consecutive year.

“The Board is particularly pleased by the conclusion of the Postbank Joint Venture with Fortis and the imminent start of its roll-out across the post office network”, she said.

An Post Chief Executive, Donal Connell said the company had worked hard to improve efficiencies and control costs whilst driving growth in mails revenue.  He emphasised that the Strategic Plan for the period to 2011 will foster a business culture in which commercial opportunities may be exploited and in which change is seen as a normal, ongoing and consensual process. Closures in the rural network will continue.

“While we are satisfied that mails volume growth and revenue are going in the right direction, there is no room for complacency.   We will continue to control costs and improve efficiencies as well as focussing strongly on quality of service.   We will also maximise business opportunities as they arise in the run up to, and following, the introduction of full competition,” he concluded.

The accounts note exceptional spending in two areas: a retrospective pay award relating to the years 2003 and 2004 of €20m; and €13.8m invested in the preparation of a banking proposition and the establishment of that Joint Venture with international financial services provider, Fortis.

The Naas Road, Dublin site was sold for €107m and resulted in a net profit of €76.7m after book cost and capital gains tax deductions.