Passenger revenues rise 9% at Northern Rail

NORTHERN Rail recorded pre-tax profits of £38.53m last year after growing passenger revenue by 9% to £16.9m.

Turnover fell 2% to £570.6m as the subsidy it receives from the Department for Transport was cut by £34.2m.

Northern Rail is a joint venture owned by Serco and Abellio Transport Holdings which operates rail services across the North West, Yorkshire and the North East.

Ian Bevan, managing director for Northern Rail, said: “The Northern Rail franchise was awarded in 2004 as a ‘steady state’ with no growth expected by the Government and awarding body during the franchise period.

“The only capital investment specified was £250,000 per annum for accessibility improvements. However, we have re-invested over £30m in capital schemes to date and worked with stakeholders to attract additional third party investment.

“We’re employing 7.5% more people than we were at the start of the franchise and independent research estimates that each year our services generate at least £650m of economic and other benefits for the north of England, providing a 2:1 return on subsidy.”

Northern Rail said the increase in passenger revenues was driven largely by increases in ticket fares regulated by the Government as well as higher demand and efforts by Northern to drive ticket sales. The Government received £15.1m from the rise as part of a revenue share agreement.

The pre-tax profit figure for the year to January 7 represents a 4% fall on the £40.17m recorded in the previous 12 months.

The year saw Northern Rail add 50 carriages to its network and invest £2.5m in station improvements.