Tuesday, November 05, 2013

Train Profits

 It is the 20th anniversary of rail privatisation. 

In the financial year ending in March 2012, the train companies gained an average return of 147% on every pound they put into their business. In other words,  For every pound the railway barons at Stagecoach, Virgin and Arriva put in, they got £2.47 back.

 Since 2004, the pre-tax return on capital employed was never less than 100%. Most of the pre-tax profit was paid to shareholders as dividends. 

No wonder Richard Branson is a billionaire with his own private island. No wonder Tim O'Toole, boss of FirstGroup, and Brian Souter, head of Stagecoach, are on more than a million a year each. 

The really big improvements, such as the west coast mainline upgrade now enjoyed by Branson's business, are funded by the State.

From here

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