Virgin profits from public subsidy

17 October 2016

New figures show enormous increases in year on year profits and dividends for Virgin Rail Group Holdings Limited. Financial results for the year ended March 2016 show an annual profit of £51 million a 28% increase on 2015 while shareholders received dividends of more than £55 million, nearly 100% more than in the previous period.

Virgin Rail controls 51% of the West Coast rail franchise in partnership with Stagecoach and 10% of the East Coast franchise with Stagecoach holding the remaining 90%.

Commenting on the results ASLEF General Secretary Mick Whelan said, ‘these financial results from Virgin Rail are a shocking indictment of the reality of the UK rail industry in 2016. This is a company which invests little and does no more than required to under its contract yet has received hundreds of millions of pounds of public subsidy and has just awarded its shareholders a near 100% increase in dividends. How long will Secretary of State for Transport Chris Grayling continue to stand by this failing system?’

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