Network Rail reduced operating costs by a further £120M in 2011/12, its annual results have revealed.
The rail operator said it was making “steady progress” in delivering the challenging efficiency targets set out by the Office of Rail Regulation for its current funding period which runs between 2009 and 2014.
Operating costs, excluding depreciation, fell to £2.35bn from £2.47bn the year previously. Operating and maintenance costs per train mile in real terms have fallen by 84p to £7.04 during the last year – down from £12.05 at 2011/12 prices in 2003/04.
“Our results today demonstrate clear and steady progress in meeting our efficiency targets. These targets are tough but we are committed to succeeding,” said Network Rail group finance director Patrick Butcher.
“In a year where Network Rail has maintained financial discipline, we have continued to deliver a larger capital programme, building the capacity of the railway of tomorrow,” he said.
Revenue was £6.0bn, up on £5,7bn previously. Operating profits were £2.3bn, up on £2.0bn.