Network Rail sees profits slide

Network Rail profits are reinvested in the railway system

British railway infrastructure operator Network Rail has seen its annual profit fall and its debt level increase.

Pre-tax profit fell to £1.52bn in the period to 31 March, from £1.59bn in the same period a year before.

Meanwhile net debt rose to £22.3bn from £19.7bn. Network Rail failed to meet targets for efficiency savings set by the Office of Rail Regulation.

However, punctuality hit a new high as 90.6% of trains arrived on time, the best since records began in 1992.

Trains are considered to have arrived on time if they are within five minutes of their scheduled time on commuter routes and within 10 minutes on longer routes.

Bonuses

There has been some recent debate about whether Network Rail bosses should receive bonuses, which are based on Network Rail's performance.

Its chief executive Iain Coucher has decided to give up his annual bonus this year, although he will still receive his long-term performance bonus.

Other executives there may still receive bonuses, although no details of those are expected until the publication of Network Rail's annual report at the end of the month.

It invested £4.7bn in the railway, from £4bn in the year before.

The operator's profits are regulated by the Office of Rail Regulation and will be reinvested in the railway system.