Network Rail’s debt rose by almost £1bn in six months to just over £28bn, its half year 2012/2013 results revealed today.
Net borrowing at Network Rail (NR) rose from £27,200M on 31 March 2012 to £28,043M today. NR said the increase was primarily due to funding of capital investment and to a lesser extent an increase in the valuation of its retail price index bonds.
NR’s revenue also increased, rising from £2,997M on 31 March to £3,167M today.
NR’s operating profit saw little change - £1,226M today compared to £1,277M for the same period last year. The firm’s pre-tax profits rose sharply, rising from £136M to £573M in the six months since March.
“We have seen growth on the network of 5% a year for a decade and this is set to continue,” said Network Rail group finance director Patrick Butcher. “That means we continue to become more efficient so we can continue to invest to meet this growth.”
“This, combined with the traffic growth allow us to sustain high levels of capital investment, delivering £2.1bn of worth of capital work in the six months.”