Figures released by the Royal Mail yesterday showed the company's performance and profits were back on track.

In 2002, the state-owned firm made a loss of £1.1billion. This year, its profits rose to a record £537 million and bonuses of more than £1,000 were paid to each of its postal workers.

The change in fortune is being put down to sweeping cost cuts introduced by chief executive Adam Crozier, who scrapped the second post and fired 34,000 staff.

Despite the cuts, performance has improved. Last year, The Argus revealed one in ten letters across Brighton and Hove was arriving late. Now 92.8 per cent of first class items are arriving on time across Britain.

Performance figures for Sussex are still being verified by the Royal Mail, but Jeff Street, manager for the Brighton and Redhill postcode areas, said they looked encouraging.

He said: "The Brighton area has done well compared to the national averages. We are delighted with the results. In terms of my area we have been through the biggest changes I have ever seen in the business, probably in British industry.

"We have delivered improved profits and performance in the Brighton area.

"Our staff have played the biggest part in that and they have worked extremely hard.

"Across the Brighton area we have 1,600 staff working at more than 20 delivery offices and they have all worked through big changes this year, not without difficulties."

He said staff were delighted with their bonuses.

David Lepper, Labour MP for Brighton Pavilion, was pleased the company had improved its results but said the loss of the second post early in 2004 had been a high price to pay.

He said: "People have adapted to it but I certainly find it very inconvenient.

"There is a good chance for many of us that post to our homes used to arrive before we left for work in the mornings.

"Now it doesn't arrive until the middle of the morning for most of us so we have to plan two days ahead most of the time, which I think could be a problem."

When the second post was scrapped Mr Lepper received complaints from businesses in Preston Road that they were receiving post late in the day but that problem had now been fixed, he said.

The Royal Mail Group still faces significant problems. It has a pension deficit of £2.5 billion which will cost £800 million a year to shore up.

The firm's 14,609 Post Office branches lost £110 million last year and failing rural branches are being subsidised by the Government at a cost of £3 million a day.

Post Office branches have lost 40 per cent of their business after the way benefits are paid changed, with pension books being swapped for cash cards.

May 18, 2005