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Friday 23 Nov 2007

NETWORK RAIL INFRASTRUCTURE LIMITED – INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2007

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National

BEST PUNCTUALITY FOR A DECADE STRONG AND STABLE FINANCES MORE FOCUS ON MEETING GROWING DEMAND

Network Rail today publishes its interim results for the half year to 30 September 2007. The results show the best train punctuality for a decade, averaging 91% for the period, strong and stable finances allowing continued high levels of investment, and a pre-tax profit of £780m. Chairman Ian McAllister said: "The company's performance over the past six months demonstrates the increasing strength and stability of the national railway network. We will maintain a daily focus on the delivery of a safe, reliable and efficient railway, while also looking to the future - growing the capacity of the network and creating an even greener railway for customers. "We have outlined plans of how we'd like to expand and develop the network over the next five years and beyond. This will deliver more trains, more seats, more frequently. With passenger numbers at a 60-year high and freight use up more than 50% in the last 10 years, the need to boost capacity on the network is clear. Network Rail will play its part in making this happen." Financial highlights

• Strong and stable finances
• A pre-tax profit of £780m compared to £747m last year (4% increase)
• Capital expenditure of £1.7bn, up by £243m against last year
• Income was £3bn compared to £2.9bn for same period last year
• Net debt reduced slightly by £148m to £18.25bn from £18.39bn at 31 March 2007

Train performance

• Best punctuality for a decade - an average of 90.87% of trains ran on time over the first six periods of the year (April to September)
• Over the past 12 months, an average of 88.8% of trains ran on time, the highest level for nine years
• Network Rail has reduced its delay minutes for the half-year over the past five years by 40%

Savings

• £1.7bn or 26% has been taken out of the cost of operating and maintaining the railway infrastructure in the past three years
• Network Rail is making good progress on meeting the Office of Rail Regulation’s tough target of a 31% reduction in costs over a five-year period

Safety

• Rail remains the safest form of transport
• Key safety indicators, such as broken rails and drivers passing red signals, are at record low levels

Investment

• A further 16% increase in capital expenditure has seen over £1.7bn invested in the network over the last six months
• Over the past 10 years, the railway infrastructure has seen almost a fivefold increase in investment (£811m in 1995/6 to £4bn this year)

Network Rail’s profits are not distributed to shareholders but are used to re-invest in the railway or reduce debt. The company’s profits have contributed to this year's £4bn investment programme and led to a reduced borrowing requirement over the period. Mr McAllister concluded: "The past six months has been a period of continued progress. Train punctuality for the period is at a 10-year high. Our safety record remains good and we have strong and stable finances that give us the foundations to plan for the future. "New and greater challenges lie ahead with our multi billion pound plans to deliver a bigger, better railway for passengers and freight that will ease overcrowding and boost capacity. Network Rail is well placed to work with our industry partners to deliver this growing, greener railway that the country demands."