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Network Rail profits increase to £438m | Network Rail profits increase to £438m |
(40 minutes later) | |
Profits at the company that maintains Britain's rail network have risen - but its performance results fell. | |
Network Rail saw pre-tax profits increase 10.8% from £395m to £438m in the year to 31 March. | Network Rail saw pre-tax profits increase 10.8% from £395m to £438m in the year to 31 March. |
But the number of trains running on time fell to 90.9% from 91.5%, due mainly to the severe winter weather. | But the number of trains running on time fell to 90.9% from 91.5%, due mainly to the severe winter weather. |
The company cut costs by £400m and said it was on target to meet "challenging efficiency savings" demanded by the rail regulator. | |
Last month, a report into the rail industry by Sir Roy McNulty said that the cost of running the network should be 30% lower, bringing it in line with other European railways. | |
Network Rail's finance director, Patrick Butcher, told the BBC that the industry accepted that costs must be driven down further. | |
"The rail industry simply has to become more affordable for the user of the railway network and for taxpayers," he said. | |
Mr Butcher said that Network Rail had begun to devolve decision-making throughout the company, one of the recommendations Sir Roy said would improve efficiency. | |
When asked about whether the industry's high costs were due to the way it is split between train companies and Network Rail, which maintains the infrastructure, he said: "I think that the industry can improve by working closer together." | |
The company's revenues increased from £5.66bn to £5.71bn while operating profits rose from £1.9bn to £2bn. | |
Capital expenditure rose slightly to £4bn. | |
Staff numbers were cut to 35,606 from 37,153 with average salaries increasing by 1.5%. |
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