LONDON – Network Rail, the owner and infrastructure manager of most of the railway network in Great Britain, reported a decrease in operating profit for the six-month period ending September 30, 2024. The company’s operating profit fell to £1,270 million, a decline of £224 million compared to the same period in the previous year.

Revenue for the period was slightly down by £13 million, totaling £5,283 million. Network Rail attributed the decrease in revenue to a reduction in grant income, partly offset by inflation-linked increases in charges. The company also reported a decrease in net cash from operating activities, which fell by £56 million to £2,171 million.

Operating costs saw an increase of £211 million, reaching £4,013 million, driven by rises in energy costs, maintenance charges, and staff costs. Despite the increase in costs, the company managed to make a profit before tax of £3 million, a notable improvement from the £82 million loss recorded in the same period last year.

Capital expenditure during the half-year was £3,046 million, a reduction of £346 million compared to the previous year. Network Rail noted that this included investment in key projects such as the Trans Pennine Route Upgrade.

The value of the railway network increased to £88.9 billion from £86.9 billion as of March 31, 2024, reflecting an upward revaluation based on inflation rates and forecasts regarding revenue and running costs.

Network Rail’s net borrowings saw a slight increase of £25 million, with total borrowings standing at £60.2 billion. The company stated it is not planning to issue any new debt in the foreseeable future.

The report highlighted the company’s focus on increasing productivity and reducing costs, with a target of £3.9 billion in savings for the five-year period ending in 2029. Network Rail emphasized the importance of improving train performance, particularly reliability and punctuality, to encourage continued growth in rail usage, which has reached approximately 96% of pre-COVID levels.

The financial results are based on a press release statement and reflect the first half of Network Rail’s five-year funding plan, Control Period 7. The company also acknowledged the serious incident in October, where two trains collided in Wales, resulting in one fatality and multiple injuries, underscoring the constant focus on safety within the industry.

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