An Post reports profits of €40.7m for 2005

An Post has reported after-tax profits of €40

An Post has reported after-tax profits of €40.7m for 2005 after further cutting its operational costs and the sale of its top-up companies in Britain and Spain that earned it €59.3 million.

The semi-state's annual report and accounts, released today, show an operating profit of €16.2 million, up from €1.8 million in 2004.

A provision of €40 million was made towards restructuring costs arising from the major Collection and Delivery Change programme agreed late last year with the company's main trade union, the Communications Workers' Union.

Operating costs fell for the second successive year, down €16.5 million to €736.7 million. Payment of the full terms of the Sustaining Progress Agreement added €38 million to payroll costs.

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An Post says the rationalisation of the SDS parcels operation is producing savings of more than €10 million per annum and that the business is now operating profitably.

An Post chairwoman Margaret McGinley said that the key strategic objective over the past three years had been to return the company to financial stability: "We turned the corner on this in 2004 and further progress was made in consolidating and strengthening the position of the company in 2005."