1996-06-26 Government appoints financial agent for Channel Tunnel Rail Link project (Department of Transport)

_______________________________________________________________

date 10 June 2003
source GB Railways Group
type Statement

GB Railways Grp PLC
Final Results
10 June 2003


10 June 2003


GB RAILWAYS GROUP PLC

PRELIMINARY RESULTS FOR YEAR ENDING 31 MARCH 2003

Highlights

•Pre tax profit £900,000 (2002 - loss of £1.2m)

•Passenger revenue for the Group up 9.6%

•Anglia Railways revenue up 6.7%, helped by new Norwich to Cambridge
service

•GB Railfreight operating profit increased 55% to over £1.0m (2002 -
£0.7m)

•Hull Trains operating profit of £0.7m (2002 - loss £0.6m)

•Bidding for several new passenger franchises - shortlisted for Northern
Rail and Greater Anglia and awaiting a decision on Wales & Borders

The Chairman of GB Railways, Allen Sheppard, said:

'We are very pleased with these results. GB Railfreight has increased its
profit, Hull Trains has moved into profit with a positive contribution from
Anglia Railways.

The Board remains optimistic for the future and believes that the Group's return
to overall profitability gives us a sound base for continued growth. Our record
of managing performance, delivering innovation and improvements in customer
service also places us in a strong position as a franchise bidder.'

Enquiries:

Jeremy Long, GB Railways Group Plc 020 7983 5104

Max D Steinkopf, GB Railways Group Plc 020 7983 5104

John Coles/Bella Jowett, Bell Pottinger Financial 020 7861 3232





Review of Operations 2003

We are pleased to provide our report for the year ended 31 March 2003. The two
new businesses started in the last three years, Hull Trains and GB Railfreight,
are both now profitable, and the Group has returned to overall profitability
with a positive contribution from Anglia Railways.

Results

For the year ended 31 March 2003, Group profit before tax was £0.9m (2002 - loss
£1.2m). Passenger revenue for the Group increased 9.6% to £74.9m (2002 - £68.4m)
with total income, which includes our non-passenger business, GB Railfreight, up
13.8% to £86.2m (2002 - £75.8m).

The positive results reflect the elimination of losses at Anglia Railways (which
now trades at break-even after changes to our franchise agreement in 2002),
continuing growth in profitability from GB Railfreight and an initial profit
from Hull Trains. The results also reflect the net receipt of an insurance
settlement of £0.5m, and the expenditure of £0.6m on bid costs that were written
off during the year.

Dividend

The Directors are not recommending the payment of a final dividend (2002 - nil).

Anglia Railways

Anglia Railways passenger revenue increased 6.7% for the year which compares
with a national average growth rate of 3.3%. Growth in first class travel slowed
in the second half of the year, however leisure and commuter traffic growth
remained strong. Revenue growth was also helped by the introduction, in
September, of a new Norwich-Cambridge service, the result of another Rail
Passenger Partnership supported by the Strategic Rail Authority (SRA). Revenue
on this new service is substantially exceeding expectations. We discontinued the
Crosslink service between East Anglia and Basingstoke, which had been funded on
an experimental basis by the SRA.

Pursuant to the deed which amended the Anglia Railways franchise agreement the
Group receives management fees of £1.0m per year and may earn additional
incentives over the two year period to, and payable at the end of the current
franchise term, 31 March 2004. Based on performance as at 31 March 2003, these
incentives, had they been included in these results, would have been worth at
least £0.7m. This amount is expected to increase during the current year.

Anglia Railway's punctuality and reliability continues to rank among the best of
the Long Distance (intercity) and Regional franchises. However, performance is
not back to pre-Hatfield levels and we continue to work with Network Rail and
its contractors to improve punctuality and reliability.

We have launched many initiatives to improve our own performance. This has
included a trial of Class 90 locomotives to replace our ageing Class 86
locomotive fleet. To date, results have been positive. We are in discussions
with the SRA to replace the entire fleet of 14 Class 86 locomotives.

The team at Anglia Railways has a very proactive attitude to continuous
improvement and learning. This focus has produced impressive results over recent
years with, among other things, significant reductions in station and driver
related delays. Our approach is consistently recognised as 'best in class' by
industry audits and reviews and this was again emphasized by the recent National
Task Force Forward Review Assessment which concluded:

'The Anglia Railways team have demonstrated once again that they are a leading,
and probably the leading exponents in the industry of disciplined, consistent
and documented performance management arrangements. Similarly they have again
shown the desire for continuous improvement through cross-company and
cross-industry learning.

That overall train performance remains disappointing is a concern, as the route
to significant improvement from Network Rail is far from clear. However, Anglia
Railways is almost certainly doing all it reasonably can to prise out the
betterment which is available, through its very robust structure of
cross-company relationships and interfaces.'

We were also pleased to remain among the top franchises in terms of customer
satisfaction, with 86% of respondents to the SRA's Autumn National Passenger
Survey indicating overall satisfaction. Our approach to continuous improvement
was recognised in February 2003 when Anglia Railways was awarded its fourth
Charter Mark. The Charter Mark is a comprehensive customer service assessment -
with only 36 UK organisations of all kinds having achieved such a consistent
rating. The business received another accolade at the Rail Innovation Awards
2003, when Anglia Railways was presented with the Customer Service award for the
second year in a row. We also received the Best Operator Cycle Mark, also for
the second year in a row, a National Arts & Business Award, and a commendation
for our joint work with the Bittern Line Community Partnership to develop
environmentally-friendly initiatives on the Norwich to Sheringham line, at the
Network Rail Environment Awards.

GB Railfreight (GBRf)

Completing its second full year of operation, GB Railfreight continued to make
excellent progress with operating profit increasing to £1.0m (2002 - £0.7m).
Revenue almost doubled to £10.6m (2002 - £5.6m) with the commencement of
container services for Medite Shipping, haulage for British Gypsum, and short
term work related to the Channel Tunnel Rail Link construction in Kent.

Container services from the Port of Felixstowe for Medite Shipping increased
with daily services to both Selby and Hams Hall.

We have recently taken delivery of five additional freight locomotives, bringing
our fleet to 17. This will allow us to be more responsive to short term market
opportunities. The quality of service provided to our customers was recognised
when GBRf won the Freight Achievement of the Year Award at the National Rail
Awards and the overall Rail Business of the Year Award at the HSBC Rail Business
Awards.

Hull Trains

Hull Trains, our Intercity style direct service from Kings Cross to Hull and
Humberside, moved into profit with operating profit of £0.7m (2002 - loss
£0.6m), including net insurance proceeds of £0.5m relating to the Hatfield
disruption. Passenger revenue increased to £6.7m (2002 - £4.5m) reflecting the
benefits of increased marketing, additional services and capacity, and improved
timetabling.

In the second half of the year Hull Trains traded profitably and is now expected
to trade profitably in the future. A further uplift in earnings will occur from
April 2004 with the benefit of revised track access arrangements.

Hull Trains is still on target to acquire two new sets of trains. The first set
of 4 trains will be 100 mph 3 car Class 170 units to arrive in early 2004. These
are similar to the units that Hull Trains currently leases from Anglia Railways.
The second set, also of 4 trains, will be 125 mph 4 car Class 222-type units to
arrive in mid 2005. These units, being built to Hull Trains' specification, will
be similar to the Voyager units operated by Virgin and the Meridian units to be
operated by Midland Main Line. Following acceptance into service of the larger
and faster 125 mph trains we expect a further increase in revenue and earnings.

As a non-franchised, open access, train operating company, Hull Trains'
performance statistics are not published in the tables with franchised
operators. If they were however, Hull Trains' performance would show that it is
the top performing Long Distance passenger operator in the industry for both
punctuality and reliability.

With Hull Trains trading profitably, its first Managing Director, Jim Morgan
will be stepping aside to concentrate on franchise bids for the Group. Jim is
being replaced by Mark Leving, a 25 year industry veteran who joins us from
Network Rail. Jim will remain as a non-executive director of Hull Trains and we
express our gratitude to Jim for establishing Hull Trains and imbuing it with
the outstanding performance and customer service culture that it has.

Estonia

We continue to earn a management fee from our minority interest in Edelaraudtee
AS, a passenger and freight railway in Estonia.

RSE Management

We recently established a subsidiary, RSE Management Ltd, to provide consulting
services in respect of risk, safety and environmental matters in the rail
industry. Our analysis of the market suggests that with recent changes in the
industry there is an opportunity to combine practical operational experience
with knowledge of the requirements of safety regulations. The new business is
being headed up by Mike North, an experienced industry safety professional
formerly with Railway Safety. While the business has only been trading since
April 2003, early indications are positive.

Safety

As always, safety remains an absolute priority within the Group.

The Train Protection & Warning System (TPWS) is now operational across our whole
fleet (passenger and freight). TPWS was mandated for the industry by the safety
authorities as a result of inquiries into major industry accidents in recent
years. The benefit of TPWS is that it applies the brakes to a train that is
about to pass, or passes, a red or danger signal. The effect is that the
consequence of signals passed at danger (SPADS) is expected to be reduced,
though the actual number of SPADS may not change.

Franchise Bidding

We welcome the approach of the SRA to franchise management - which seeks
operators with a culture and approach to performance improvement and customer
delivery which is wholly consistent with the values and track record of GB
Railways.

We are currently one of 5 shortlisted bidders for the Northern Rail franchise
and one of 3 shortlisted bidders for the Greater Anglia franchise. Bids for both
franchises will be submitted later this year.

We await a decision on the Wales & Borders franchise, having recently submitted
a joint Best and Final Offer with our partner, Connex Transport UK.



Unfortunately, in April we were unsuccessful in bidding for the MerseyRail
franchise where we joined with the UK subsidiary of Keolis SA. We were also
unsuccessful in obtaining a place on the ScotRail shortlist.

The Northern Rail franchise encompasses services across northern England. It is
probable that we will join with a partner for the Northern Rail franchise.

The Greater Anglia franchise combines our existing Anglia Railways franchise
with the Great Eastern franchise, and the West Anglia routes of the West Anglia
Great Northern franchise. We may join with a partner for the Greater Anglia
franchise.

Bid costs for the year totalled £0.6m and were written off as they were
incurred. With increased bidding activity we expect costs to be somewhat higher
in the current year.

Training and Staff Development

The Group has established training and briefing programmes covering safety,
performance and customer service, which are key factors in ensuring safe,
efficient and effective delivery of the business.

Anglia Railways has received approved centre status for delivery of National
Vocational Qualifications across a broad range of railway skills, including
driving, catering, conducting and station operations.

Our investment in staff development was recognised during the year with our
telesales office in Norwich being awarded Investor in People status and three
employees achieving NVQs in their roles as caterers and driver respectively.

GB Railfreight has an established programme of driver training and route
learning for its growing workforce. Across the Group our investment in training
is averaging about 10 days per employee per year. All employees participate in
personal performance reviews with their line managers. This provides focuses
both on business aims and individual development needs.

Jeremy Long is a member, representing train operating companies, on the Rail
Skills Board set up by the SRA to enhance training and development throughout
the industry. A charitable trust, funded by the GB Railways Directors, has made
over 30 awards of up to £2,000 each to employees to help them develop skills
that support their personal development.

Prospects

Over the next two years we expect the shape of GB Railways to become different
from that which it is today. If we are successful in one or more of our bids for
the Northern Rail, Greater Anglia, or Wales & Borders franchises then we will be
a substantially larger company. If all of our franchise bids fail, we will still
remain a viable entity, with substantial cash resources and two growing and
profitable businesses in Hull Trains and GB Railfreight.

We remain as optimistic as ever and view the franchising process as an enormous
opportunity. We believe that our record of managing performance, delivering
innovation and improvements in customer service place us in a strong position as
a franchise bidder. We have an acknowledged team of highly experienced rail
professionals, with the project management and customer service delivery skills
which will be needed for the new franchise contracts.

Over the past two years we have accomplished much in difficult and competitive
circumstances. We have continued to focus on growth and quality in each of our
core businesses, and consistently improved in each of them. With the return to
profitability we have overcome a period of uncertainty and now enter the
refranchising process from a position of renewed strength. To each GB Railways
employee, we express on behalf of the Board and all of the shareholders, our
gratitude and appreciation for your efforts.



Allen Sheppard Jeremy Long
Chairman Chief Executive & Deputy Chairman

9 June 2003


Consolidated profit and loss account for the year ended 31 March 2003

2003 2002
Note £'000 £'000
Turnover
Passenger and other income 1 92,141 81,358

Payments to the SRA 1 (5,913) (5,599)

Operating expenditure (85,657) (77,385)
------- -------

Operating profit/(loss) 2 571 (1,626)

Write off of loan to associate (8) -

Loss on disposal of fixed assets - (4)
Income from fixed asset investments 20 -
Interest payable 3 (28) (40)
Interest receivable and similar income 4 302 432
------- -------

Profit/(Loss) on ordinary activities 857 (1,238)
before taxation

Taxation on profit/(loss) on ordinary 5 (367) (54)
activities
------- -------
Retained profit/(loss) for the financial 14
year attributable to members of the parent company 490 (1,292)

====== ======
Basic and diluted profit/(loss) per 6
share 5.6p (14.8p)
====== ======
All amounts relate to continuing activities.



All recognised gains and losses are included in the profit and loss account.



Consolidated balance sheet at 31 March 2003

Note 2003 2002
£'000 £'000 £'000 £'000
Fixed assets

Tangible fixed 7 1,983 1,845
assets

Investments 8 64 64

------- -------

2,047 1,909


Current assets
Stocks 9 621 663

Debtors 10 9,173 9,055

Bonded cash 12 6,299 5,934


Cash at bank and
in hand 6,187 5,525

------- -------

22,280 21,177


Creditors: amounts
falling due within 11 19,533 18,782
one year

------- -------

Net current assets 2,747 2,395

------- -------

Net assets 4,794 4,304

====== ======

Capital and reserves

Share capital 66 66
Share premium 13 6,309 6,309
Profit and loss 13 (1,581) (2,071)
account
------- -------
Equity shareholders' 14 4,794 4,304
funds
====== ======

The financial statements were approved by the board on 9 June 2003.


Max D Steinkopf
Director


Company balance sheet at 31 March 2003

Note 2003 2002
£'000 £'000 £'000 £'000
Fixed assets

Tangible fixed 7 48 41
assets

Investments 8 77 84

------- -------

125 125

Current assets
Stocks 9 105 140

Debtors 10 1,776 2,700

Bonded cash 12 3,600 3,250

Cash at bank and 877 1,302
in hand

------- -------

6,358 7,392

Creditors: amounts
falling due
within one year 11 1,442 1,759

------- -------

Net current assets 4,916 5,633
------- -------
Net assets 5,041 5,758
====== =======
Capital and
reserves

Share capital 66 66

Share premium 13 6,309 6,309

Profit and loss 13 (1,334) (617)
account

------- -------

Equity shareholders' 14 5,041 5,758
funds ====== ======


The financial statements were approved by the board on 9 June 2003.





Max D Steinkopf

Director






Consolidated cash flow statement for the year ended 31 March 2003

2003 2002
Note £'000 £'000 £'000 £'000

Net cash inflow/ 15 1,320 (558)
(outflow) from
operating activities

Returns on
investments and servicing of
finance

Interest paid (58) (5)


Interest
received 302 432

Dividends
received 20 -
------- -------

264 427
Net cash inflow from
returns on investments
and servicing of finance

Taxation

Corporation tax - (211)
paid



Capital expenditure and financial
investment

Payments to acquire (557) (420)
tangible fixed
assets
------- -------
Net cash outflow (557) (420)
from capital
expenditure
and financial
investment
------- -------
Cash inflow/ 1,027 (762)
(outflow) before use
of liquid resources
and financing

Management of liquid
resources

Increase in (365) (36)
bonded cash
------- -------




Increase/ 16 662 (798)
(Decrease) in
cash in the
year ======= ========



Notes to the accounts for the year ended 31 March 2003

1 Turnover, profit and net assets

Turnover, which is stated net of value added tax, represents amounts
receivable from third parties.

All turnover, profit and net assets are attributable to the Group's
principal activity, the operation of rail services in the United
Kingdom.

Turnover is analysed as follows: 2003 2002
£'000 £'000

Passenger income 74,897 68,357
Freight income 7,628 4,937
Other income 9,616 8,064
------- ------
92,141 81,358
Payments to the SRA (5,913) (5,599)
------- -------
86,228 75,759
======= ========


2 Operating profit/(loss)

The following amounts have been charged / (credited) in

arriving at the operating profit/(loss):


2003 2002
£'000 £'000

Depreciation 485 434
Auditors' remuneration- audit 103 105
(Company £40,000 - 2003; £40,000 - 2002)
- other 18 20
Exchange (gain)/loss (4) 13
Operating lease rentals - rolling stock charge 15,339 17,298
- buildings 4,700 4,123
- other including infrastructure 17,182 15,937
Compensation receivable under rail access (9,003) (10,370)
agreements
====== ======



3 Interest payable

2003 2002
£'000 £'000

Corporation tax interest 15 34
Other interest 13 6
------- -------

28 40
======= =======


4 Interest receivable and similar income


2003 2002
£'000 £'000

Bank deposits 302 432
====== ======



5 Taxation on profit/(loss) on ordinary activities


2003 2002
£'000 £'000
Current tax
UK Corporation tax on profit of period 117 -
Adjustment in respect of previous periods 27 47
------- -------

144 47

Deferred tax

Origination and reversal of timing differences 223 7
------- -------

Taxation charge on profit/(loss) on ordinary 367 54
activities
======= =======

The tax assessed for the year is higher than the standard rate of
corporation tax in the UK. The differences are explained below:

2003 2002
£'000 £'000

Profit/(Loss) on ordinary activities before tax 857 (1,238)
===== =====
Profit/(Loss) on ordinary activities at the
standard rate of corporation tax in the UK
of 30% (2002 - 30%) 257 (371)


Effects of:

Expenses not deductible for tax purposes 122 98
Income not charged to tax (6) (3)
Depreciation for period in excess of capital - 33
allowances
Capital allowances for period in excess of (13) -
depreciation
(Utilisation)/Accumulation of tax losses (242) 243
Adjustment to tax charge in respect of previous 27 47
periods
Marginal relief (1) -
------- -------
Current tax charge for period 144 47
====== =======

Factors that may affect future tax charges

A deferred tax asset of £365,000 (2002 - £380,000) which relates to tax
losses and timing differences in Anglia Railways Train Services Ltd has
not been provided as the losses are not expected to reverse against
future taxable profits for the foreseeable future.



6 Profit/(loss) per share

Basic profit/(loss) per ordinary share has been calculated using the
weighted average number of shares in issue during the year. The weighted
average number of equity shares in issue was 8,750,000 (2002 -
8,750,000) and the profit was £490,000 (2002 loss - £1,292,000).

Diluted profit/(loss) per share was the same as basic loss per share for
this year since, under FRS 14, none of the subsisting options over
shares were deemed to be dilutive by reference to the average price of
the shares during the year.


7. Tangible fixed assets


Group Company
Plant, equipment and property related £'000 £'000
expenditure

Cost
At 1 April 2002 3,035 69
Additions 636 18
Disposals (37) -
------- -------
At 31 March 2003 3,634 87
------- -------
Depreciation
At 1 April 2002 1,190 28
Charge for year 485 11
Disposals (24) -
------- -------
At 31 March 2003 1,651 39
------- -------

Net book value
At 31 March 2003 1,983 48
======= =======

At 31 March 2002 1,845 41
======= =======



8 Fixed asset investments

Associated Unlisted
Undertaking Investments Total
£'000 £'000 £'000
Group
Cost
At 1 April 2002 7 64 71
Disposal (7) - (7)
------- ------- -------
At 31 March 2003 - 64 64
------- ------- -------
Share of retained loss
At 1 April 2002 (7) - (7)
Eliminated on disposal 7 - 7
------- ------- -------
At 31 March 2003 - - -
------- ------- -------
Written down value
At 31 March 2003 - 64 64
and 31 March 2002 ======= ======= =======



The unlisted investment effectively comprises a 20% share in the share
capital of GB Railways Eesti AS ('Estonia'), a company registered in
Estonia which is held through Railways Holdings Limited, a 100% owned
subsidiary. GB Railways Eesti AS owns Edelaraudtee AS, the passenger and
freight railway operator in Western Estonia. 'Estonia' has not been
treated as an associated undertaking in terms of FRS 9 - Associates and
Joint Ventures, as the Group does not exercise significant influence
over the Company's operating and financial policies.

During the year the company disposed of its 70% holding in Abbotcrown
Ltd, an associate. The company was not treated as a subsidiary
undertaking in terms of FRS2 - Accounting for Subsidiary Undertakings,
as the Group had restricted influence. The company was restricted from
taking certain decisions without the consent of its minority
shareholder, precluding GB Railways Group plc from exercising control.

Unlisted investments also includes 1 ordinary share of 4 pence each in
each of the following companies:

ATOC Limited

Rail Settlement Plan Limited

Rail Staff Travel Limited

During the year the company was allotted a £1 ordinary share in RITC
Ltd.



Details of the principal subsidiary undertakings which have been
consolidated in the Group financial statements are set out below.


Country of
Group incorporation Nature
Name holding and operation of business

Anglia Railways Train 100% Great Britain Train operating company
Services Limited

East West Rail 100% Great Britain Dormant company
Limited

GB Extended Ventures 100% Great Britain Dormant company
Limited

GB Railfreight 100% Great Britain Freight operating
Limited company

GB Railways Limited 100% Great Britain Holding company

RSE Management Limited 100% Great Britain Dormant company
(formerly
GB Railways Overseas
Limited)

Great Anglia Railways 100% Great Britain Dormant company
Limited

Greater Anglia Railways 100% Great Britain Dormant company
Limited

Great Anglian Railways 100% Great Britain Dormant company
Limited

Greater Anglian 100% Great Britain Dormant company
Railways Limited

Rail Wales Limited 100% Great Britain Dormant company

Hull Trains Company 80% Great Britain Train operating
Limited company



Subsidiary Associated Unlisted
undertakings undertakings investments Total
Company £'000 £'000 £'000 £'000

Cost
At 1 April 3,263 7 64 3,334
2002
Disposal - (7) - (7)
------- ------- ------- -------

31 March 3,263 - 64 3,327
2003
------- ------- ------- -------
Provision
At 1 April
2002
and 31 March 3,250 - - 3,250
2003
------- ------- ------- -------
Written Down
Value

At 31 March 13 - 64 77
2003
===== ===== ===== =====
At 31 March 13 7 64 84
2002
===== ===== ===== =====

9 Stocks


Group Group Company Company
2003 2002 2003 2002
£'000 £'000 £'000 £'000

Engineering stores 479 480 - -
Rolling stock 105 140 105 140
Catering stores 37 43 - -
------- ------- ------- -------
105
621 663 140
======= ======= ======= =======



The directors do not consider that any material difference exists
between the cost stated above and the present replacement cost.



10 Debtors

Group Group Company Company
2003 2002 2003 2002
£'000 £'000 £'000 £'000

Trade debtors 6,630 5,734 125 286
Amounts owed by group - - 1,572 2,361
undertakings
Deferred tax asset 424 647 - -
Other debtors 565 542 23 26
Prepayments and accrued 1,554 2,132 56 27
income

-------- -------- -------- --------

9,173 9,055 1,776 2,700
======== ======== ======== ========


Included in other debtors is an amount of £16,000 (2002 - £10,000),
which is due after more than one year. Amounts due after more than one
year included in Deferred tax total £240,000 (2002 - £484,000).

11 Creditors: amounts falling due within one year

Group Group Company Company
2003 2002 2003 2002
£'000 £'000 £'000 £'000

Trade creditors 5,874 6,125 48 593
Amounts owed to group - - 981 524
undertakings
Corporation tax 144 - 10 -
Other taxation and social 1,049 575 41 21
security
Other creditors 1,952 1,180 41 496
Accruals and deferred 10,514 10,902 321 125
income
------- ------- ------- -------

19,533 18,782 1,442 1,759
====== ====== ====== =======


12 Financial instruments

Interest rate and currency of cash balances

The Group's passenger railway activities are characterised by short
revenue collection periods. Income is received as cash or near-cash, or
through industry clearing houses with short average payment periods.
Hence, the Group's balance sheet shows high net current assets, and high
cash balances on which significant interest income is earned. The
Group's cash balances earn various rates of interest, based on the
corporate money market rates set by The Royal Bank of Scotland. The
Group is therefore affected by changes in UK interest rates. There are
no fixed rate financial assets. The management of cash flow and
investment of cash is controlled by the finance function. Cash is
invested on a short-term basis.

The Group held sterling cash balances of £12,486,000 (2002 -
£11,459,000) at 31 March 2003 of which £6,299,000 (2002 - £5,934,000) is
bonded and not available to meet working capital needs. GB Railways
Group plc holds £3,600,000 (2002 - £3,250,000) of cash which is used as
security to provide a performance bond under the Anglia Railways
franchise agreement and a guarantee on behalf of GB Railfreight Ltd.
Anglia Railways holds £2,699,000 (2002 - £2,684,000) as security for a
bond in respect of advanced season ticket purchases.

The Group does not have significant currency exposure from transactions.

Long-term loans

The Group does not have any long-term loans.

Undrawn bank facilities

GB Railways Group plc has an undrawn bank borrowings facility of
£100,000 (2002 - £100,000) available to it. This facility is for the
purposes of providing flexibility in the management of liquidity and is
subject to annual review.

Fair value of financial instruments

The difference between the fair values and book values of financial
instruments is not significant.



13 Reserves


Profit
Share and loss
Group Premium Account
£'000 £'000

At 1 April 2002 6,309 (2,071)
Profit for the year - 490
------- -------
At 31 March 2003 6,309 (1,581)
====== ========



The cumulative amount of goodwill written off to reserves in respect
of prior years is £154,000 (2002 - £154,000).


Profit
Share and loss
Company Premium Account
£'000 £'000

At 1 April 2002 6,309 (617)
Loss for the year - (717)
------- -------

At 31 March 2003 6,309 (1,334)
====== =======

14 Reconciliation of movements in shareholders' funds


Group Group Company Company
2003 2002 2003 2002
£'000 £'000 £'000 £'000

Profit/(Loss) for the 490 (1,292) (717) (2,959)
financial year
------- ------- ------- -------
Net increase/(reduction)
in shareholders' funds 490 (1,292) (717) (2,959)

Opening shareholders' 4,304 5,596 5,758 8,717
funds
------- ------- ------- -------
Closing shareholders' 4,794 4,304 5,041 5,758
funds
======= ======= ======= =======


15 Reconciliation of operating profit/(loss) to net cash inflow/(outflow) from
operating activities


2003 2002
£'000 £'000

Operating profit/(loss) 571 (1,626)
Depreciation charges 485 434
Decrease/(increase) in stocks 42 (60)
Increase in debtors (340) (2,377)
Increase in creditors 562 3,071
------- -------
Net cash inflow/(outflow) from operating 1,320 (558)
activities
======= ========

16 Analysis of changes in net funds

At At
1 April Cash 31 March
2002 Flows 2003
£'000 £'000 £'000

Bonded cash 5,934 365 6,299
Cash at bank and in hand 5,525 662 6,187
------- ------- -------
Net funds 11,459 1,027 12,486
======= ======= =======



Details of bonded cash are stated in Note 12.



This information is provided by RNS
The company news service from the London Stock Exchange

Railhub Archive ::: 2003-06-10 GBR-001