Network Rail reports 'steady progress'

Network Rail claimed it had continued to make "steady progress" in reducing its costs as it announced increased profits yesterday, adding that it was on target to achieve "challenging" efficiency savings.

In its full-year results, the infrastructure firm - which owns the UK's track, signals and stations - revealed it had cut the costs of running the railway by 400 million in the past year and by 600m since 2009.

Revenue increased from 5.67 billion to 5.71bn while operating profits rose from 1.98bn to 2.03bn, giving a pre-tax profit of 438m, up from 395m the previous year.

Capital expenditure stood at 3.99bn, up from 3.92bn.

Group finance director Patrick Butcher said the findings of the recent UK government-commissioned McNulty review showed there were clear opportunities for the industry to make further savings in the costs of running the railway.

"The message is clear - the rail industry simply has to become more affordable for the users of the railway network and for taxpayers," he said.

Staff numbers were cut to 35,606 from 37,153 with average salaries rising by 1.5 per cent.

Performance dropped over the year, with 90.9 per cent of passenger trains running on time, down from 91.5 per cent. Network Rail mainly blamed the severe winter weather.