Finance and profitability

Passenger fare revenue is built from the stop-to-stop legs passengers actually ride and is recognised when the scheduled working completes.

If a working is cancelled after passengers have already completed part of their travel, only fare allocated to that completed travel may still settle. The unused remainder is discarded.

Operating costs and contract support accrue as the service operates, and contract penalties reduce that result. Government support accrues continuously and appears as one daily ledger entry rather than hundreds of small entries.

• Route setup and infrastructure access.
• Per-mile running and station access costs.
• Daily fixed and lease costs.
• Maintenance, refurbishment and upgrades.
• Train purchase and depot positioning.
• Contract penalties and disruption-related lost revenue.

1. 1Check whether the route is fully resourced and delivering its timetable.
2. 2Compare capacity with demand: too little capacity loses passengers, while excessive stock costs money.
3. 3Review fare value and the reference fare.
4. 4Inspect reliability, cancellations and persistent satisfaction.
5. 5Check congestion, depot positioning and active contract penalties.
6. 6Review train running cost and whether the stock is appropriate for the distance.

Company value includes cash, the realistic resale value of owned fleet, reputation value and the value created by your station estate and its improvements. Leased trains do not count as owned assets. Age, mileage, condition and train upgrades all influence resale value.