Media centre

Friday 26 Nov 2004

NETWORK RAIL LIMITED INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2004

Region & Route:

National

Improvements in rail performance gathered pace in the first six months of 2004/5 as Network Rail cut delays by 16% and recorded an operating profit.  Costs were reduced, rail maintenance was taken in-house, and the company was reorganised along customer-focused functional lines, while a £20 billion debt issuance programme was launched following the period end. Financial headlines* ·         Turnover increased from £1,501m to £1,874m ·         Total operating costs (excluding depreciation and exceptional items) reduced by £70m ·         First half operating profit of £249m compared to £71m operating loss ·         Net debt increased from £10.67 billion to £14.26 billion ·         Pre-tax loss of £8m compared to £206m loss in 2003/4 Performance highlights ·         16% reduction in Network Rail delay minutes ·         12 successive months of year on year punctuality improvements ·         £51m net performance income versus £213m performance penalties (* all results compare six months to 30 September 2004 with six months to 30 September 2003) John Armitt, Chief Executive, said: “It has been an encouraging six months with an acceleration in the rate of performance improvement and continued progress in our efforts to improve the efficiency of the business. “The first half of 2004/5 marked the start of the new five year regulatory period, which has put the company on a sound financial footing.  Our new investment appraisal procedures are ensuring greater efficiency and maximising the effectiveness of every pound in the ground. “We are undertaking record investment to deliver a safe, reliable and efficient railway.  Passengers are benefiting from improved punctuality and the completion of key projects, though we all recognise much remains to be done before we deliver the railway the public rightly expect.”