Network Rail grows profits by 11pc but number of late trains creeps up
PROFITS at Network Rail jumped almost 11 per cent last year, although its performance dipped.
Pre-tax profits at the firm that maintains Britain’s rail network jumped 10.8 per cent to £438m in the year ending 31 March.
However, the number of trains running on time fell from 91.5 per cent to 90.9 per cent, which Network Rail attributed to December’s severe winter weather.
The firm cut costs by £400m and said it was on target to meet “challenging efficiency savings” demanded by the rail regulator.
It has saved £600m since it embarked on a programme of cost cuts two years ago.
Last month, a report into the rail industry by Sir Roy McNulty said Network Rail should cut the cost of running the network by 30 per cent to bring Britain into line with the rest of Europe.
Network Rail finance director Patrick Butcher said the industry accepted that costs must be driven down further.
“The rail industry simply has to become more affordable for the user of the railway network and for taxpayers,” he said.
Network Rail said revenues were up £5.66bn to £5.71bn while operating profits grew from £1.9bn to £2bn. Capital expenditure rose slightly to £4bn while net debt grew five per cent to £25bn.