Merseyrail franchise back on track with bumper revenues and profits

Merseyrail has benefited from the pandemic bounceback after announcing record sales for the year to January 7, 2023.

The rail operator, jointly owned by Serco Group and Transport UK, reported a pre-tax profit of £15.136m for the year, compared with £2.751m the previous year, on turnover of £185.683m, up from £163.005m in 2022.

On January 7, 2023, Merseyrail said its cash balance was £33.2m, compared with £28.9m on January 8, 2022.

It said the company has remained in a positive cash position throughout the period.

The shareholders will split a dividend of £14.5m following the strong results. No dividend was recommended last year due to the impact of the pandemic on passenger levels.

Serco and Transport UK’s franchise for Merseyrail runs until 2028.

The network covers key routes from Liverpool to Southport, Hunts Cross, Kirkby, Ormskirk, Chester, West Kirby, New Brighton and Ellesmere Port.

Directors’ notes in the latest annual accounts filed at Companies House say: “FY 2023 saw passenger confidence grow, as large-scale events returned to the region.

“As a result, our revenue recovery and growth for FY 2023 has been strong, and we are now operating at 85% of pre-pandemic levels.

“As we look ahead into FY 2024, we have three key events in Merseyside, the Grand National, Eurovision, and The Open Golf Tournament. We hope to utilise these events to maximise our revenues.”

Merseyrail said it is continuing the roll-out of its new £500m fleet of 777 Class trains during the current financial year.

On January 23, 2023, the first of the new 777 fleet entered service on the Liverpool to Kirkby line.

Throughout the current year they have also been phased into service on the Wirral lines and will be introduced onto the Hunts Cross to Southport line after an upgrade at the Southport terminus.

A new station at Headbolt Lane, an extension to the Kirkby line, was opened earlier this month, which will be served by battery-powered 777’s, due to the absence of a live third rail on the new link.

The battery-powered trains could extend the Merseyrail network to destinations including Manchester, Wrexham, Warrington, Preston and Runcorn.

Merseyrail also said it remains committed to the proposed reopening of the St James station, in the heart of the Baltic Triangle business and leisure area.