InterCity rail operator West Coast Trains saw profits rise sharply during the year to 28 February 2009 to just under £99m, according to its annual accounts. Turnover was 1% down at £779m, whilst costs also fell (thanks to a cut in track access charges) by almost 5%.
This was the first full year of the revised franchise, which commenced in November 2007, and included the Birmingham-Glasgow services formerly operated by Cross Country on the West Coast route. This change was followed in December 2008 by the introduction of the new high frequency timetable on the West Coast Main Line, following completion of the infrastructure upgrades.
The company's 2008/09 saw a rise in passenger revenue of just over 5%, mirroring the 5.3% growth in passenger journeys. The number of passenger kilometres was 5.7% higher, so that revenue yields fell by 0.6%. Meanwhile, however, the number of train kilometres was 27% up on the previous year - thanks to the extra Birmingham-Glasgow services but also following the introduction of Virgin's "Very High Frequency" timetable. As a consequence of these changes, average train load fell by almost 17% to just under 150 - a load factor of 35% on a 423-seat Pendolino tilting train.
Revenue grant received from Government was sharply lower, but was more than offset by a over £100m worth of compensation payments made by Network Rail in respect of ongoing disruptions to services from infrastrcuture upgrade work and subsequent poor equipment performance. This compensation payment is actually higher than the company's operating profit during the year, which may offer some worrying signs for the future for TOC co-owners Virgin and Stagecoach.
Financial Report
West Coast Trains Limited
Results
| Year to | 28 Feb 09 | 01 Mar 08 | Change |
|---|---|---|---|
| Item | £000 | £000 | % |
| Turnover | 779,456 | 787,662 | -1.0% |
| Operating Costs | 680,767 | 714,913 | -4.8% |
| Operating Profit/(Loss) | 98,689 | 72,749 | +35.7% |
| Other Costs/(Income) | (5,859) | (8,505) | -31.1% |
| Pre-Tax Profit/(Loss) | 104,548 | 81,254 | +28.7% |
| Tax Payable/(Credit) | 28,123 | 24,799 | +13.4% |
| Net Profit/(Loss) | 76,425 | 56,455 | +35.4% |
| Exceptionals | 0 | 0 | - |
| Profit/(Loss) for Year | 76,425 | 76,425 | +35.4% |
Performance
| Year to | 28 Feb 09 | 01 Mar 08 | Change |
|---|---|---|---|
| Operating Profit Margin | 12.7% | 9.2% | - |
| Pre-Tax Profit Margin | 13.4% | 10.3% | - |
| Return on Capital | 347.1% | 333.3% | - |
| Return on Assets | 15.5% | 31.1% | - |
| Dividend Paid (£000) | 74,900 | 74,900 | +00.0% |
| Turnover per employee | £255,727 | £280,706 | -8.9% |
| Pre-tax profit per employee | £34,301 | £28,957 | +18.5% |
Statistics
| Year to | 28 Feb 09 | 01 Mar 08 | Change |
|---|---|---|---|
| Staff employed (total) | 3,048 | 2,806 | +8.6% |
| Total Asset Value (£000) | 492,645 | 245,689 | +100.5% |
| Company Net Worth (£000) | 30,123 | 24,382 | +23.5% |
| Capital investment (£000) | 1,997 | 0 |
Traffic Statistics
| Year to 31 March | 2009 | 2008 | Change |
|---|---|---|---|
| Passenger jnys (m) | 22.95 | 21.80 | +5.3% |
| Passenger km (m) | 4,451.92 | 4,213.50 | +5.7% |
| Passenger Rev. (£000)* | 611,012 | 581,659 | +5.0% |
| Subsidy Payment (£000) | (71,600) | 161,624 | -144.3% |
| Train kilometres (m) | 29.75 | 23.40 | +27.1% |
Traffic Analysis
| Year to 31 March | 2008 | 2007 | Change |
|---|---|---|---|
| Average Jny (km) | 193.98 | 193.28 | +0.4% |
| Average Fare | £26.62 | £26.68 | -0.2% |
| Yield per pass. km | £0.1372 | £0.1380 | -0.6% |
| Subsidy per pass. km | -£0.0161 | £0.0384 | -141.9% |
| Average train load** | 149.64 | 180.06 | -16.9% |
* - estimated if fiscal and financial years do not coincide.
** - Passenger kilometre per train kilometre.
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