Railtrack Group plc

Railtrack Group interim results for the six months ended 30 September 2001
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date 18 December 2001
source Railtrack Group plc
type Press release

The following results are for Railtrack Group PLC and cover the six month
period ending 30 September 2001 prior to the appointment on 7 October 2001 of
Joint Special Railway administrators for the Group subsidiary Railtrack PLC.

Financial Highlights

o £292 million pre tax profit, £2.9 billion of net assets and over £1
billion of bank lines

o Investment and renewals up 25% to a record £1,400 million, over 4
times pre tax profits were re-invested in the network by recourse to
financial markets

o Contingent liabilities (outlined at the 2001 year end) were actively
being addressed

Operational Highlights

Clear evidence of operational progress:

o Train delays attributable to Railtrack down by 52% on the previous
six months - infrastructure delays were similar to pre Hatfield levels
by September 2001

o Broken rails down by 12% compared to first half of 2000/01 (and by
36% over two years)

o Temporary speed restrictions fell by 443, a 39% drop to 696

o Average track quality at highest level since 1994

Real progress towards creating a safer network

o TPWS fitment on course against HMRI targets (commissionings have
doubled in six months)

Announcing the interim results for Railtrack Group, Chief Executive Steve
Marshall commented that the results demonstrate two things:

' First, that Railtrack was trading profitably, in line with expectations, and
the contingent liabilities outlined at the 2001 year end were being addressed.
As we have said consistently, Railtrack PLC was NOT insolvent until the
Secretary of State chose to make it so. No financial meltdown was in sight.

'Secondly, many multiples of profit were being re-invested in the network at
unprecedented levels. Railtrack was achieving this by using these profits to
borrow in the financial markets. Bigger profits financed greater borrowing
which delivered higher investment in the network - something no longer
possible. This investment must continue if our ageing network is to be
sustained.

'Railtrack was working more closely with its customers and had begun to
deliver against its public service agenda. No one is pretending that the
railway is delivering what passengers deserve or expect. The post-Hatfield
challenges are truly immense, but as these results for the half year
immediately prior to Administration show, we were at least making some real
progress in the right direction.

'The ongoing Railtrack PLC management team led by John Armitt, and
its 12,000 employees, deserve everyone's' unqualified support. Following
administration their task is now even more demanding.

'The Board of Railtrack is committed to maximising value for shareholders.
It is not in the interests of passengers or taxpayers for the period of
Administration to be prolonged. The Board will take any action, including
legal action, to crystallise the full and fair value of the network.

- ends -

For more information please contact:

Sue Clark Railtrack 020 7557 8292/3
Donal McCabe Railtrack 020 7557 8292/3
Suzanne Bartch Maitland 020 7379 5151

Railhub Archive ::: 2001-12-18 RTK-001