Jarvis pulled out of rail maintenance work in 2003

The failure led to the derailment of a goods train near Rotherham in November 2002, Sheffield Crown Court heard.

Jarvis Facilities pleaded guilty to breaching health and safety law.

The judge told representatives of the company it was a matter of "public good fortune" the incident was not a disaster involving a passenger train.

As every child with a train set knows if you let a train run where there is no track there will be crash Judge Robert Moore

Lawyers for the company told the court Jarvis had abandoned its rail maintenance contract following the incident at Aldwarke junction.

The firm blamed the decision on the fragmented nature of the railway system, saying it was impossible to exercise control over emergency repairs.

The fine on Monday came just hours after city analysts warned the firm could be bankrupt by the end of July.

The claims came as a third was wiped off the Jarivs share price in the wake of a warning over spiralling write-offs.

The court was told of the rail group's financial worries.

Points failure

Stuart Denney, defending, said: "One cannot assume that there is now a very substantial corporation at the back of this company."

Mr Denney pleaded guilty on behalf of the company to a charge of failing to ensure the health and safety of someone not in their employment - a train driver.

The court heard that the accident happened after the empty coal train was diverted onto a stretch of track which had a rail missing.

Jarvis engineers had installed a straight piece of track as a replacement for a crossing until a new crossing could be made.

But they failed to lock out the points which let trains onto the section.

No crash danger

Judge Robert Moore said: "As every child with a train set knows if you let a train run where there is no track there will be crash.

"The fact that nobody was injured, and there was no disaster involving a passenger train, is a matter of public good fortune."

But the judge accepted that few passenger trains used the cross-over section serviced by the points.

He also accepted that trains using the section never travelled faster than 25mph and the signalling system meant they could not have crashed into any other train.