By Guy Taylor
The UK’s largest train operator Govia Thameslink dished out a record dividend to its shareholders despite industrial action, disruption and delay across Britain’s rail network.
A £62m payout was given to its three overseas shareholders in July and was given a seal of approval from the Department for Transport (DfT), according to the group’s latest accounts.
The train operator is a joint venture between UK transport conglomerate Go-Ahead Group and Keolis, which own 65 per cent and 35 per cent respectively.
The bumper dividend was funded in part by the British taxpayer, who helped prop up the provider with over £2bn in financial backing to get through the pandemic.
Govia runs Thameslink, Southern, Great Northern and the Gatwick Express. Nearly a third of its trains failed to run on time in the most recent quarter and four per cent were cancelled, according to figures from the Office for Rail and Road (ORR).
In a statement, Govia said the dividends “reflect a build-up of reserves over nearly eight years of operation of GTR, between 2014 and 2022. Payment was delayed by the pandemic but has now been released following agreement with the Department for Transport.”
The spokesperson added: “We are proud of the service provided… which carries 850,000 passengers a day and accounts for nearly a fifth of all rail journeys in the UK.”
“During the year to March 2023, nine out of ten trains arrived within five minutes of their scheduled time. We installed barcode readers at every station, hired nearly 200 apprentices and saw passenger journeys return to 100 per cent of pre-pandemic levels at weekends.”
The record dividend comes after a torrid few years for Britain’s rail operators, who have struggled to recoup finances and improve performance since the pandemic wiped out passenger numbers. At the same time, the DfT has planned for a rail fare hike of up to 4.9 per cent from March next year, taking the annual season-ticket price between London to Brighton to nearly £6,000.
Industrial action has plagued the railways since unions first agreed to walk out in March 2022 and delays have become a feature of the system. But progress has been made in recent months, with the RMT striking a deal to avert action until at least spring, although no such agreement has been signed by the train drivers’ union ASLEF.
Govia Thameslink was fined £15m and banned for a year in 2018 by former transport secretary Chris Grayling after rail timetable changes caused widespread disruption. Following the chaos, a number of local MPs and the RMT demanded it have its franchise removed altogether.
