Royal Mail revenues are expected to be £900m higher

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Royal Mail revenues are expected to be £900million higher than last year following a significant surge in customers posting letters in the last month. 

The cost of a major restructuring is also expected to come in below expectations, costing around £90million instead of an original estimate of £140million. 

Revenues are set to be considerably higher than last year - at around £8.6billion - and, for the entire group, adjusted operating profits will hit around £700million, compared with £325million a year ago.

Royal Mail said letter volumes, along with advertising, business and stamped mail, have all performed above expectations.

© Provided by Daily MailRoyal Mail revenues are expected to be £900million higher than last year following a significant surge in customers posting letters in the last month

Parcels have remained in line with expectations, which remain at all-time highs.

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A major restructuring announced last June is nearing completion and is expected to save £15million this year, with targeted annual savings of £130million after that.

The update comes just a month after another profit upgrade, when bosses said they would retain around 10,000 of the 33,000 temporary workers who helped Royal Mail out over the festive period.

© Provided by Daily MailThe cost of a major restructuring is also expected to come in below expectations, costing around £90million instead of an original estimate of £140million

At its peak, the business carried 11.7 million parcels in one day - almost a third more than during the peak of the first national lockdown last spring.

That was part of the 496 million parcels delivered over the last three months of 2020 - an all-time high.

At the time, Royal Mail said it expected to make an operating profit "well in excess" of £500million in the financial year ending in March, which has now been revised to £700million.