Rail firm reports profit of £1.52bn

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The pre-tax profit for 2008/09 was roughly comparable with the £1.59 billion figure achieved in 2007/08.

But the not-for-dividend company said its net debt had risen from £19.7 billion to £22.3 billion.

And its profit after tax dipped from £1.2 billion in 2007/08 to £609 million in 2008/09, mainly due to a £524 million increase in the deferred tax charge following the abolition of the industrial buildings allowance.

Also, although it introduced economy measures during last year, NR's 27% efficiency savings for the period since 2003/04 was short of the Office of Rail Regulation (ORR) target of 31%.

Generally, though, the company was able to point to a successful year in performance terms, with train punctuality hitting the 90% mark over the period April 2008 to March 2009. It is against NR's performance that the company's remuneration committee decides on annual bonuses for the staff, with top directors also eligible for an additional bonus as part of a rolling three-year incentive scheme.

Details of this year's bonuses are due to be released at the end of this month.

NR chief executive Iain Coucher has already said he will forego any annual bonus this year. But he is still eligible for the incentive scheme bonus.

Last year Mr Coucher got an annual bonus of more than £305,000 and a further £205,000 bonus under the incentive scheme. This was despite the company being fined a record £14 million by the ORR for three serious engineering work overruns over the Christmas and new year 2007/08 period.

Bob Crow, general secretary of the Rail Maritime and Transport union said: "If Network Rail are running more trains and are so flush with cash why are they taking the risk of another major disaster like Hatfield, Potters Bar or Grayrigg by cutting back the vital track renewals programme by 28% and axing key engineering jobs?"