BRITAIN’s state-owned postal group, Royal Mail, which last week managed to halt a series of wildcat strikes, is poised to declare its first interim profit for five years.

Allan Leighton, the group’s chairman, is expected to reveal the group moved into the black for the first six months of the year, making an operating profit of £50m and a pre-tax profit of more than £3m.

It marks a big turnround in the group’s financial fortunes, which last year saw a loss of £611m.

But it is still a low return on sales of £4 billion. Leighton is likely to emphasise that any further strike action will seriously undermine Royal Mail’s recovery.

The recent strike could have cost the company as much as £40m in lost sales — and it prompted a number of big business customers to desert.

The first-half profits have been flattered by the recent 1p rise in the price of first and second-class stamps and Leighton is likely to stress that more cost savings and efficiencies will have to be made.

These will be needed to meet additional costs resulting from the recent pay rises and pension contributions. This could total nearly £500m a year.

Adam Crozier, Royal Mail’s chief executive, has set a profit target of £400m a year to be met in 18 months.

If this is achieved all staff will receive an £800 bonus.

But success is not guaranteed and the group has a rocky relationship with the postal regulator.