Transport for LondonFinancial review
Skip to navigationAnnual Report and Accounts 2005/06
TfL's Investment Programme concluded its first year with a number of key achievements including the opening of the DLR extension to London City Airport, the modernisationof Wembley Park station and the introduction of the seventhcarriage on the Jubilee line, boosting capacity by almosta fifth.
The start of the Investment Programme was reflected in a 54 per cent increase in TfL's capital expenditure to £1,785m for the year. In addition, strong passenger demand contributed to a better than budget operating margin, helped by additional efficiencies that were some £50m above target.
Financial review
During 2005/06, TfL continued to experience strong levels of demand for its services across all transport modes, despite the operational impact of the terrorist events in July 2005.
The recovery in demand was much quicker and stronger than anticipated, so that by year-end, demand was back to the levels seen before these events.
This recovery was reflected in the 2005/06 revenue result, which was up 7 per cent on the previous year to £2,738m. Operational spend increased by some 6 per cent to £4,434m, reflecting proportionately increased operational costs and payments under the PPP and PFIs.
| TfL Group financial highlights(£m) | 2005/06 | 2004/05 | Change (per cent) |
|---|---|---|---|
| Expenditure | 4,433.8 | 4,189.9 | 5.8 |
| Revenue | (2,737.6) | (2,554.5) | 7.2 |
| Net cost of services before depreciation | 1,696.2 | 1,635.4 | 3.7 |
| Depreciation net of release of deferred grants | 215.4 | 213.8 | 0.7 |
| Share of the operating result of joint venture company (Crossrail) | 22.9 | 22.1 | 3.6 |
| Net cost of services | 1,934.5 | 1,871.3 | 3.4 |
| Net financing charges | 63.9 | 24.2 | 164.0 |
| Loss on sale of fixed assets | 3.9 | 5.5 | (29.1) |
| Net operating expenditure | 2,002.3 | 1,901.0 | 5.3 |
| Grants and contributions to/(from) reserves | (1,999.3) | (1,925.5) | 3.8 |
| Deficit/(surplus) | 3.0 | (24.5) | |
| Capital expenditure | 1,784.9 | 1,157.4 | 54.2 |
There was a marked increase in the level of capitalworks being undertaken during 2005/06, the firstyear of TfL's landmark Investment Programme.Capital expenditure during the year was up 54 per cent to £1,785m.
Next Page: Operational performance
