Isle of Man Post Office has made a profit for the fifth year in a row.

Its latest statutory board plan, for the year 2025-26, shows that it made a profit of £3.85m, up £1.25m from the previous year, with turnover steady at £25.1m.

The Post Office went into the black for the first time in 2020-21 after posting three years of losses.

Its profit that year was £1.61m which dipped to £1.53m the following year and then dropped to £540,000 in 2022-23 before bouncing back to £2.58m in 2023-24.

Chief executive Simon Kneen said the improvement in profitability was driven largely by ‘operational efficiencies through innovation and adaptability’.

Letter volumes declined by 11%, in line with expectations, while e-commerce parcel volumes saw modest growth, supported by new contracts with UK logistics partners.

There was a focus on cost management and customer service, with only four complaints per 100,000 items handled.

The retail network continues to come under pressure.

Withdrawal of MiCard by December this year and vehicle licensing services by March 2026 will reshape counter services, impacting more than 70% of non-postal transactions.

With fewer regular collectors, the stamps and coins division has taken steps to broaden its market reach and diversify revenue, including the launch of an online store.

Looking ahead, the Post Office said it is focused on growing its parcel market share, the continued modernisation of its retail network, the launch of a new corporate website and its plans to further electrify the fleet up to 70 vehicles and install solar panels at postal headquarters.

Chairman Stu Peters MHK said: ‘This year’s results reflect the loyalty of our customers, the dedication of our entire workforce, and the strategic leadership of our board.’

The statutory board plan 2025–26 will be presented to Tynwald next month.