Operating profits fall for Network Rail, as debts rise
June 11, 2012
Network Rail’s debt had risen to £27bn by the end of 2011-12, up from £25bn the previous year. But operating costs have fallen during the same period by £120m, the company’s full year results show.
Network Rail’s debts are guaranteed by the government and form a crucial part of the company’s funding.
The infrastructure owner has been set strict efficiency targets by the Office of Rail Regulation for the funding period 2009-2014.
Group finance director Patrick Butcher said: ‘In a year where Network Rail has maintained financial discipline, we have continued to deliver a larger capital programme, building the capacity of the railway of tomorrow. At the same time Network Rail has shown it is open to change and reform – with the aim of delivering greater accountability and better value and service for our customers and funders.’
Staff costs also fell, with staff numbers falling from 35,253 to 35,606.
Major Network Rail projects that have been in progress during the last financial year include the new concourse at King’s Cross station, the rebuilding of Birmingham Gateway station and construction on the Thameslink project.