Royal Mail profits down

Royal Mail. the UK postal operator, has announced a drop in profits for the financial year ending 31 March 2007. This has been attributed to rising pension costs and increased competition in the UK's fully liberalised postal market.Royal Mail's European parcel business, General Logistics Systems (GLS), recorded increased revenues and operating profits.The post office network recorded a loss of £99m. But the underlying loss, excluding a government revenue subsidy of £75 million, increased by 57% to £174 million.Mail volumes fell, in part due to Royal Mail losing business to other postal operators. Royal Mail is now seeking to restructure its pension fund and introduce modernisation measures in an effort to remain competitive and continue to provide service to all UK residents.