Network Rail has seen their pre-tax profits increase from £395m to £438m in 2010/2011.
However, as earlier reports show, the number of trains running on time fell from 91.5% to 90.9% because of the severe weather over winter.
The company reported they ‘continued to make steady progress in reducing costs’ and that they remain on target to achieve the efficiency savings set out for the current funding period – control period 4 (CP4) – which runs from 2009-2014.
In real terms, it has reduced the costs of running the railway by £400m in the year and around £600m since the start of CP4.
Group finance director, Patrick Butcher, said:
“The findings of the government-commissioned McNulty value for money review show that there are clear opportunities for the whole industry to make further savings in the costs of running the railway.
“The message is clear: the rail industry simply has to become more affordable for the users of the railway network and for taxpayers.”
Network Rail has taken a number of ‘significant steps’ during the year in pursuit of delivery beyond our regulatory targets and to position the company for the longer term ambition set out in the McNulty review.
Sir Roy McNulty’s report said Britain’s railways should be around 30% less expensive to run, to be in line with countries such as France.
Some highlights of Network Rail’s financial results include:
- Revenue was £5,712m (2009/10 : £5,668m)
- Operating profits were £2,028m (2009/10 : £1,981m)
- Profit after tax was £313m (2009/10 : £284m)
- Capital expenditure was £3,997m (2009/10 : £3,920m)
- Net debt at year end was £25,049m (2009/10 : £23,838m)
- Gearing ratio (debt to regulated asset base) was 63.4% (2009/10 : 63.9%)
- Operating costs, excluding depreciation reduced to £2,467m from £2,546m.
Staff costs fell to £1,734m from £1,746m. Staff numbers fell to 35,606 from 37,153 although average salaries rose by 1.5%.
Operating and maintenance costs per train mile in real terms fell by 77p to £7.61 during the last year – down from £11.64 seven years ago.
