Network Rail FY profits up; strong budgetary control

Source: Supply Chain Digital

Date :06/06/2008 11:40:24

The rail infrastructure company reports a 20 percent rise in full year profit despite New Year delays.

For the year ending March, 31 2008, Network Rail reported a £1.2 billion rise in profits, up from £1 billion the previous year.

With no shareholders, the profit will be re-invested back into the railway, the company said.

Budget control

Group finance director Ron Henderson attributed the growth to “strong budgetary control”. He said that this, together with improved understanding of the costs bases and drivers, would put the company in good shape for the challenges ahead in the period.

Turnover last year was £5.96 billion, an increase of £165 million on the previous year, while operating profit increased from £2.3 billion to £2.4 billion.

Service delivery

Unveiling the results, Chairman Ian McAllister said the last year has been a good one for Network Rail and the industry as a whole, with passengers seeing a better service.

During the last financial year train punctuality was at its highest level since records began with an average of 89.9 percent of trains arriving on-time over the period. The company added that the figure for the twelve months to the end of April 2008 was now above 90 percent.

New Year overruns

The results follow the engineering overruns at New Year which led to the company being fined a record £14 million by the Office of Rail Regulation (ORR).

"Lessons have been learnt following the engineering overruns at New Year. Changes have been made to make the planning and execution of such big improvement schemes more robust,” McAllister said.

June 06, 2008