LAST YEAR'S general election boosted An Post's mail volumes by 3 per cent and helped boost its turnover to €876 million from €818 million in 2006.

Overall, mail volumes increased by 5.3 per cent in volume terms and by 8 per cent in value.

Chief executive Donal Connell said mail volume in the first quarter of this year has "tracked in line with expectations" in spite of the economic slowdown.

An Post's after-tax profit in 2007 declined by 42 per cent to €43.3 million, due to the effect of a windfall in the previous year from a property sale in Dublin.

Its operating profit, however, almost doubled to a record €29.1 million while its profit margin increased to 3.3 per cent from 1.8 per cent in the previous year.

An Post chairman John Fitzgerald said the strong performance was due to an "improved industrial relations climate within the company".

The company and its staff have agreed a €50 million transformation programme that will involve changed work practices and some voluntary reductions in its headcount by the end of 2009.

An Post's annual report shows that its operating costs grew by 5.3 per cent to €846.9 million.

Its aggregate wage bill was €600.1 million, up from €578.1 million in 2006. The group employed 9,900 staff last year, a reduction of just over 100 on 2006.

The postal group paid corporation tax of €6.1 million last year but no dividend was handed over to the Government.

Mr Connell was paid €523,000 last year, up from €191,000 in 2006, when he only held the post of chief executive for 4½months.

His remuneration consisted of a basic salary of €353,000, a director's fee of €18,000, a bonus of €61,000 and taxable benefits, including the use of a company car, of €21,000.

He received a pension contribution of €70,000.

Donal Curtin, who stepped down as CEO on July 13th, 2006, earned €290,000 that year. This included a salary of €170,000, a bonus of €58,000, and a pension payment of €43,000.

Mr Connell said an external review of its post office network by PA Consulting was likely to be presented to the company in the middle of this year.

He also expects to hear from the Office of Public Works "reasonably soon" as to its intentions for the future use of the GPO in Dublin and its plans to refurbish the historic building in advance of the centenary celebration of the 1916 rising.

This will probably involve An Post's head office vacating the GPO for a period of two to three years, he said. "We would have to consider alternative city centre accommodation during that time."

Mr Connell said An Post was also primed to assist in the introduction of post codes by the Government.

"We're ready to play our part in rolling them out in 2008."