Network Rail is on track with cutting costs, but says revenue is still falling
NETWORK RAIL, the rail infrastructure company, reported pre-tax profits of £146m for the six months to September yesterday, but said its net debt remained at more than £22bn, and its pension deficit had risen to almost £1bn.
But chief executive Iain Coucher said the group was making good progress towards its efficiency savings target of £4.1bn.
“Maintenance costs are declining, staff costs have been held steady, and our investment programme continues apace. The debt programme continues to be prudent, well managed and fully hedged” he added.
Smarter working processes were helping it cut costs significantly, Network Rail?said.
Revenues at the group were down, falling from just under £3.12bn in April-September 2008 to £2.84bn in the same period this year.
But the firm, which is slashing 1,500 maintenance jobs in the coming 18 months, said the falling revenue had been partly offset by “strong performance in cutting delays to passengers and better planning of improvement work”.
The rail group said its debt was at a sustainable level, and that it had cut its charges to customers and freight users who were struggling in the downturn.
Net operating costs had fallen from £1.89bn in April-September last year to just under £1.75bn in April-September this year.