Strong results for East Coast operator
THE East Coast rail operation has moved back into profit ahead of its upcoming privatisation.
Directly Operated Railways (DOR), which was set up by the Government to run the line between London and Scotland via Yorkshire, has boosted turnover to £693.8m and made a profit of £5.9m in the year to March 31.
The company, established in July 2009 after National Express lost the East Coast franchise, is wholly owned by the Secretary of State for Transport and in its annual report and financial statements, for the period from April 1, 2012 to March 31 2013, said turnover for the year to 31 March 2013 amounted to £693.8m (2011/12: £665.9m), mainly reflecting ticket revenue earned from passenger services at East Coast and associated income earned from catering, car parks and commission from the sale of tickets on other train operators’ services.
The East Coast franchise will transfer to a new private operator in February 2015 and a number of rail operators in the UK and abroad are expected to make bids.
Operating expenditure in the period amounted to £690.0m (2011/12: £661.0m), comprising access charges payable to Network Rail for stations and depots, rolling stock leasing costs, staff and other operating costs.
This generated an operating profit for DOR before Department of Transport (DfT) service payments and taxation, of £208.7m (2011/12: £195.7 m), and an operating profit after DfT service payments before taxation of £5.9m (2011/12: £7.1 m).
Doug Sutherland, chairman of Directly Operated Railways, said: “During the year, we continued to make further good progress with the business turnaround of East Coast, and we were able to achieve the best train punctuality on line since records began in the summer of 2012, the best customer satisfaction result in the Passenger Focus autumn 2012 National Passenger Survey since rail privatisation in 1993, and the highest level of employee engagement of any previous franchisee on the East Coast Main Line.
“East Coast remains Britain’s busiest train operator, with average loads per train exceeding 225 customers, which is more than 36% ahead of the next busiest operator.
“DOR is continuing to invest in the East Coast business, and from November 2009 to date, some £48m has been re-invested directly in the business, on improving its assets, delivering the introduction of new and improved customer service benefits, and in people and training.”
