Royal Mail shares surge 5% as results meet forecasts

Royal Mail's share price jumped by more than 5% in early morning trading after the company reported a significant jump in profits thanks to a number of one-off gains.

Royal Mail enjoyed one of the most successful floats ever thanks to a lowly share price which critics of the listing process said hugely undervalued the company.  Posting its first set of results since listing, covering the half year to 29 September 2013, the business reported a climb in profits from £94m to £233m. The results were lifted by a one-off VAT credit of £35m, lower depreciation and amortisation of £10m, as well as a £50m gain from lower transformation costs than previously expected. Despite the impact of one-offs, investors were pleased with the figures, and shares surg...