Network Rail profit down 10%; debt hits £20bn

Network Rail's pre-tax profit fell almost 10% for the period from 1 April to 30 September 2008 and it has announced that its net debt has now hit £20.5bn, up from £19.7bn in March.

The rail infrastructure company also revealed that its capital expenditure has increased to almost £2.2bn, up from £1.7bn in September 2007.

Its income hit £3.1bn, up from almost £3bn a year ago, and it also claimed that train punctuality was the highest since records began in 1992.

Commenting on the results, Network Rail chief executive Iain Coucher said: "The company has delivered train performance ahead of forecast while running a safe and financially efficient railway.

"We have also met all the major project milestones on the West Coast main line in a period of intense activity and are on track to complete the upgrade on time, a phenomenal achievement on such a complex project."

Last month the Office of Rail Regulation (ORR) ruled that Network Rail should have a total budget of £28.5bn for the next 'control period' between 2009-2014.

A total of £26.7bn will come from government subsidies, train operators and freight companies, with the balance coming from property rent.

The figure is around £2.5bn less than Network Rail claims it needs, and only around £200m more that the ORR had previously offered.