Hitachi Rail pays £437.9 million dividend

Almost 17 years after it started trading (in October 2005), Hitachi Rail has paid its first dividend, sending £437.9 million to its Japan-based parent company.

Responsible for the Javelin trains on High Speed 1 in Kent, for ScotRail’s Class 385 electric multiple units, and more recently for the Intercity Express Programme fleet of Class 800/801 bi-mode and EMU trains, the company employs 2,558 people.

Overall, the business, which is headquartered in Newton Aycliffe (County Durham) and which has maintenance sites across Britain, recorded revenue flat at £527.9m (2021: £525.1m).

Reporting for the year to March 31, its accounts reflect the partial sale of its investment in Agility Trains, resulting in profit down 41% to £188.1m (£319m). It also paid £14.1m in tax to the UK Government.

Despite this, it says its cash position is “strong” owing to the backing of its parent, which means it is “able to absorb repair costs associated with small cracks” discovered on the IEP and Class 385 trains. It has not disclosed the cost of repairs.

The sale of its 25% holding in Agility Trains delivered a £4.1m dividend. It also received a dividend of £70.9m (£95.1m) from its wholly owned Italian subsidiary Hitachi Rail STS, which then became part of the UK business, on May 1.