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 PlayStation and Xbox hacked by Lizard Squad
- 2 Christmas comes early to Hong Kong, as millions of bank notes spill out onto busy street
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 Vagina canoe artist defends herself over ‘obscenity’ charges
PlayStation and Xbox hacked by Lizard Squad
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
Boxing Day snowfall set to push even more bargain-hunters online for sales
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...