ScotRail’s operating losses increase

ScotRail’s operating losses increased from £2.1 million in 2016 to £15.3m in 2017, according to accounts published by Companies House in late September.

Turnover rose 10% from £610.1m to £668.9m (which included subsidy of £296.6m). ScotRail paid no dividend to its immediate owner Abellio Transport Holdings.

Meanwhile, Abellio’s other UK subsidiary, Greater Anglia, posted losses after tax of £2.5m for the year ended March 2018, in sharp contrast to the previous partial year’s profit after tax of £15.5m. Underlying revenue growth was 5.3% over the year, growing to £650.3m.

The accounts added that the results had been significantly affected by the Department for Transport deciding to enforce a revenue risk sharing mechanism that Greater Anglia is disputing.

GA’s accounts show that it borrowed £30m from its parent companies (£18m from Nederlandse Spoorwegen and £12m from Mitsui) in January 2018, and a further £50m in August 2018 (£30m from NS and £20m from Mitsui). Greater Anglia paid no dividend.

ScotRail’s latest accounts cover the year ending December 31 2017. It blames a slow recovery from disruption caused by Network Rail electrifying its key Edinburgh-Glasgow Queen Street route and the closure for remodelling of that Glasgow station.

The rise in subsidy from Transport Scotland of £38.7m has been offset by Network Rail’s access charges increasing by £44.6m to £144m. Lease costs for rolling stock fell from £82.8m to £78.9m. Staff costs increased from £237m to £243m and numbers fell from 4,892 to 4,874.