Post Office Limited (POL) has reported a drop in profit and turnover for the first six months of the year.

In its interim results for the six months to 29 September 2014, POL turnover decreased by £8m to £475m from £483m in the same period for the previous year.  Operating profit dropped by £30m while overall revenue was down by £28m, which included a £20m reduction in the government’s Network Subsidy payment during this period.

Income from government services and telecoms decreased by £7m and £6m respectively compared to the previous year while income from mails and retail (including Lottery and retail services) fell by £1m to £183m.

Its income from financial services grew by £8m to £147m for the period.

During the six-month period, POL continued to develop its mail services such as Click and Collect and Drop and Go, introducing 150 new drop off points, and continuing the Network Modernisation Programme with 10 branches transformed a day.

Chief executive officer Paula Vennells said: “In what has been increasingly volatile and competitive market conditions, we have further reduced our reliance on taxpayers’ money. We are delivering the biggest modernisation programme in UK retail history, transforming around 10 branches a day.

“As we move through the year we must continue to drive forward our transformation plans. Ensuring we both reduce our costs and at the same time meet our customers’ needs for convenience, simplicity and speed of service.”

She also praised the progress made in the financial services sector. “We are working hard to increase revenue,” said Vennells. “It’s pleasing to see the great progress made in financial services where in the first half of the year we have seen growth of 11% year-on-year in Personal Financial Services.

“We have cemented our position as the infrastructure for community banking with 95% of UK current account customers able to access their accounts in our branches. We are also working with Royal Mail to develop market leading products and services for both small businesses and consumers.”