Jersey Post returned a small profit in 2012 even though turnover was down 33 per cent to €44 million.
Most of the loss in turnover came from a decision taken in the UK that low-cost items mailed from Jersey were no longer exempt from VAT sales tax on entry into the UK.
Mailing of traditional letters and cards was also down by six per cent. However deliveries of parcels and consignments of internet shopping were up by 28 per cent.
Cost cutting and the reorganisation of the delivery system has meant that Jersey Post was still able to turn in a pre-tax profit of €1.3 million in 2012, although it was 53 per cent down on the previous year.