NORTHERN RAIL paid out dividends of £17.8m last year as revenues from passengers increased during 2014.
The company is a joint venture between Serco and Abellio and runs 2,500 train services through 464 stations every day across the north of England as part of its franchise agreement.
Northern Rail took £243.5m in passenger revenues in the 52 weeks to January 3, a 6.1% increase. However its income was badly hit by a £79.4m reduction in grants received from the Department for Transport, which was the dominant factor in a £74.1m fall in turnover.
This also affected its profitability, with pre-tax profits down 40% to £23.5m.
Northern Rail’s franchise runs until April 1 next year, having had two small extensions, and the successful bidder for the next franchise is expected to be announced before Christmas.
The company Northern Rail Ltd will cease to trade at the end of the current franchise period, regardless of the Department for Transport’s decision on the franchise operator, with the new franchise being operated through a different legal vehicle.
