International Distribution Services’ says it will take £134m hit from budget but shows improved underlying financial performance

The company that owns Royal Mail has blamed a £134m hit from Labour’s first budget in 14 years for preventing a return to profit, as its underlying financial performance improved.

International Distribution Services’ half-year results illustrate the difficulties it is facing during one of the most turbulent periods in the history of its 508-year-old subsidiary, the Royal Mail.