Because of the result, the company has paid an ordinary dividend of £444,000 to the States as its shareholder.
The strong balance sheet means it will also pay it a further special dividend of £1m.
Guernsey Post chief executive Boley Smillie said: ‘We are pleased with our results over the last year, which very much underlines how our team has continued to successfully adapt to the ongoing and significant changes in our industry.
‘While we continue to enjoy growth in our parcels business, this only partly offsets the increases in charges from our partners and the continued decline of letter volumes.’
The results cover the year until the end of March.
Mr Smillie added: ‘While dealing with the consequences of Covid-19 has been at the forefront of our minds during the current year, the pursuit of new growth opportunities is central to our plans for the future.
‘The award of the lottery distribution contract and our new grocery delivery service, IsleDeliver, are clear examples of the way in which we will continue to diversify our business.’
In the annual report, chairman Simon Milsted said the impact of Covid-19 on traditional mail volumes has been significant, with declines of about 30%.
‘With businesses adapting to new ways of working, Covid-19 has, without doubt, accelerated the rate of structural decline of traditional mail, with volumes unlikely to ever return to pre Covid-19 levels,’ he said.
‘Our foreign currency bureau, Batif, has also been adversely affected by the pandemic, with global lockdown restrictions and reduced consumer confidence in travel expected to materially impact sales beyond this financial year.’
Turnover for the year was £31.8m., an increase of £1.1m. (4%).
Expenditure was £30.4m., also an increase of £1.1m.
Of its capital spend of £1.1m., up £800,000 on the previous 12 months, £600,000 was on replacing and increasing the vehicle fleet as part of the electrification of its delivery vans.
The total number of mail items handled during the year was approximately 39m., which was in line with the prior year.
There was a growth in inward parcel volumes from both the UK and Jersey, but total inward mail delivered was down 3% on prior year, impacted by the ongoing decline seen in inward letters volumes.
Total outward mail was up 4% on prior year, primarily because of an increase in outward bulk volumes.