NETWORK RAIL INFRASTRUCTURE LIMITED – INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2006

London, United Kingdom – Network Rail 2007-11-27 publishes its interim results for the half year to 30 September 2006. The results show train punctuality for the period averaging 89.5%, more than £1 billion slashed from the costs of running the railway infrastructure at the mid point of the regulatory control period, continued high levels of investment, and a pre-tax profit of £747 million.

Chairman Ian McAllister said: “Rail is a success story. Train punctuality is at a seven year high, passenger numbers are at levels not seen for almost 50 years, travelling by train is the safest it has ever been and passenger satisfaction with the service we, and the train operators provide, is at an all time high. Network Rail is delivering across the board, but we know we have to do even more.

“We must respond now to the challenge of accommodating the growth predicted in the years ahead. The need to boost capacity on the network is clear, and Network Rail will play its part in making this happen.

“The past six months have added to the success of Network Rail’s four year history, but new and greater challenges lie ahead. We will do more for passengers and freight users and deliver ideas and solutions to ease overcrowding and boost capacity.”

Network Rail’s income has now moved to its originally intended levels, resulting in profit. For the past two years the company has been making significant losses due to it agreeing to defer a large portion of its pre-planned income from the Government for the first two years of the current control period (2004-2009).

Safety

• Rail has now overtaken air as the safest form of transport
• A 90% reduction in the risk of trains passing red signals over the past five years following the introduction of the automatic train braking systems – Train Protection and Warning System (TPWS) and TPWS+

Train performance

• An average of 89.5% of trains ran on time over the first six periods of the year (April to September) – the highest level for seven years
• Over the past 12 months, an average of 88.1% of trains ran on time. The last time train punctuality for the year reached these levels was in November 1999
• Network Rail has reduced its delay minutes for the half-year over the past four years by 29%

Savings

• £1.1bn or 25% has been taken out of the cost of operating and maintaining the railway infrastructure in the past two-and-a-half years
• Network Rail is well on the way to meeting the Office of Rail Regulation’s of a 31% reduction in costs over a five-year period

Investment

• A further 7% increase in capital expenditure has seen almost £1.5bn invested in the network over the last six months
• Over the past ten years, the railway infrastructure has seen more than a threefold increase in investment (£811m 1995/6 to £3bn this year)

Financial highlights

• A pre-tax profit of £747m compared to a loss of £108m last year
• Capital expenditure of £1.5bn, up by almost £100m against last year
• Income was £2.9bn compared to £1.9bn for same period last year
• Net debt reduced slightly by £272m to £17.9bn from £18.2bn at 31 March 2006

Network Rail’s profits are not distributed to shareholders but are used to reduce debt and re-invest in the railway. The company’s profits have contributed to the £1.5bn investment programme and led to a reduced borrowing requirement over the period.

Mr McAllister concluded: “Our priorities continue to be to drive up train performance and reduce costs. We are also spending much time and resource looking to the future, where boosting capacity and preparing the railway for more trains and passengers, is a priority.

“Sustained high levels of investment are essential if the railways are to continue to be a success. Plans must be set in place now to cope with the growth predicted over the next ten years and Network Rail will play its part to ensure rail’s future success.”

Background Information

• The railways have seen 40% growth in passengers and 60% growth in freight over the past 10 years
• Britain has the fastest growing railway network in Europe
• Over 1.1bn passengers used the railway last year (2005)
• Almost 20,000 passenger train services run each day
• Almost three million people use the trains everyday

About Network Rail
Network Rail is the ‘not for dividend’ owner and operator of Britain’s railway infrastructure, which includes the tracks, signals, tunnels, bridges, viaducts, level crossings and stations – the largest of which we also manage. We aim to provide a safe, reliable and efficient rail infrastructure for freight and passenger trains to use. Our website:
http://www.networkrail.co.uk