Less profit but more debt for rail firm

The company's operating profits, revenue and capital expenditure also fell in the 12 months ending March 2010.

But NR stressed that costs had been controlled, charges to rail companies had been cut and the number of trains on time had reached an annual record level.

The not-for-dividend company, which has no shareholders, made an after-tax profit of 284m in 2009/10 – well down on the 609m figure for 2008/09.

Revenue was 5.66bn compared with 6.16bn in 2008/09, while net operating costs were up slightly from 3.61bn to 3.68 bn. This was largely due to higher – but lower than inflation – staffing costs, said NR.

Operating profits were down to 1.98bn from 2.54bn, but the company said this was in line with terms laid down by the Office of Rail Regulation (ORR).

NR said charges to passenger train firms had been cut by 7 per cent or 22p per passenger journey, while, on average, freight charges had fallen 35 per cent.

NR chief executive Iain Coucher said: "Passengers care most about trains being on time and we have delivered another record year with punctuality surpassing 91 per cent.

"NR also has a duty to get best value for the British people and we have retained a tight focus on controlling costs. This has meant that we can cut charges to passenger and freight operators.

"As a result, the savings we make could be passed on to passengers in lower fares or to taxpayers through lower Government subsidies to the rail industry."

Mr Coucher continued: "In a more austere spending environment it is vital that NR continues to drive down costs and make further efficiency savings.

"A strong start has been made in 2009/10 in delivering against our targets but we must and we will work harder and faster in the coming years."