Member Article

Profits double at National Rail

Profits at Network Rail have more than doubled to £754 million, despite the fact that net debt levels have also increased.

The rail infrastructure firm’s debts rose from £25.05 billion in £2010/11 to £27.28 billion in 2011/12, while operating profits increased from just below £2.03 billion to £2.34 billion.

Revenues over the past year were a little over £6 billion, in comparison with £5.71 billion in 2010/11 and capital expenditure rose from £ 4 billion to £4.6 billion during the same period.

Due to actual and projected financial performance over the period the firm had returned £153 million to the Scottish and Uk parliaments. The firm is a not-for-dividend company with no shareholders, and all debts are guaranteed by the Government.

National Rail group finance director Patrick Butcher said: “Our results today demonstrate clear and steady progress in meeting our efficiency targets. These targets are tough but we are committed to succeeding.

Staff numbers also fell slightly to 35,253 while average salaries rose by 2.2%.

The firm has been warned by the Office of Rail Regulation to improve its trains-on-time performance, after only 91.6% of passenger trains were recorded as being on time.

This was posted in Bdaily's Members' News section by Ruth Mitchell .