Shares: Company of the Week
Sunday 07 June 1998
The results were better than expected, as the company succeeded in reducing costs and passenger and freight revenue rose.
"This has been an encouraging year: growth in passenger and freight, increased investment, consolidation of performance improvements, a reducing cost base and continued improvement in earnings," chairman, Sir Robert Horton, said.
About 90 per cent of the company's revenue is provided by a fixed annual charge set by Government regulators, which rises at 2 per cent above the rate of inflation. The company sliced 4 per cent from its infrastructure maintenance costs by keeping a closer control over its contractors and through the improvement of its basic infrastructure. It also cut expenses on electric rates and on managing its assets.
Railtrack has reached agreement with the Government on the future of the troubled high-speed rail link between the Channel Tunnel and London which will cut journey times to Europe.
It will help build and then buy the first stretch of the 68-mile link for an estimated pounds 1.5bn. It will also have an option to buy the second half of the link, estimated to cost pounds 1.8bn, at the end of 2006. In return, it will receive access fees from Eurostar, which operates the train service.
The project, which Railtrack estimates will cost it about pounds 3.3bn, will come on top of the company's other plans to raise infrastructure spending on the network. This year the company will increase investment by 16 per cent to pounds 1.45bn as part of a plan to spend pounds 17bn over the next 10 years.
Copyright IOS & Bloomberg.
- 1 I've been called an abusive and dangerous parent, when all I did was listen to my transgender child
- 2 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 3 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 4 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 5 Ian Brady: Moors murderer announces his support for Ukip and the SNP
Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
Russian hack of President Obama's emails worse than previously admitted
Ian Brady: Moors murderer announces his support for Ukip and the SNP
UK weather: Britain braced for snow as arctic air mass moves in
Nepal earthquake: US Pastor Tony Miano sparks outcry by suggesting Nepalis should not rebuild their 'pagan shrines'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...