NETWORK Rail reported an improved performance today after narrowing its losses.
The company said losses for the six months to September 30 were reduced to £34m from £223m a year earlier. Operating profits were £225m against losses of 95m before.
The company, responsible for track and signals across the UK rail network, said it was operating more efficiently - and trains were running more punctually - after a move to bring rail maintenance work in-house.
Network Rail took on more debt during the period - although the figure of £13.9bn at the end of September was still below previous forecasts.
With debt at £10.3bn a year earlier, the company warned that the resulting higher interest payments would lead to increased losses for the second half of its financial year. Seasonal factors are also expected to add to costs in the current six-month period.
The firm, which took over responsibility for the rail network in 2002, said one of its key achievements had been to bring rail maintenance back in-house.
The move - involving 16,000 workers, 5,000 road vehicles and 600 depots - should help cut annual maintenance spending by 30% by 2008-2009.
The firm also cut costs through tougher scrutiny of work and reduced penalty payments to train operators.
