Nottingham tram operator's losses double to £57m

The number of passenger journeys has increased to 14.4m

Nottingham's tram network operator has more than doubled its losses, despite passenger numbers increasing.

Companies House documents show Tramlink Nottingham Limited reported losses of £57m to March 2023, up from £20m in 2022.

This has largely been put down to assets decreasing in value following a review, known as impairment.

The increase in the company's reported losses is despite passenger journeys increasing from 9.1m to 14.4m.

Its turnover has also increased from £55m to £63.3m.

Keolis and its subsidiary Nottingham Trams Limited run the city's network as part of the Tramlink consortium, under the Nottingham Express Transit (NET) name and branding.

Much of its costs relate to repayments on long-term loans that funded its construction, the Local Democracy Reporting Service said.

The documents reveal there is "some liquidity risk" due to insufficient revenue from fares to fund the network's operation.

NET increased the price of its fares on Monday, with an adult single ticket going up by 20p to £3.20.

Pandemic legacy

In a statement on Tuesday, the operator said the loss reported in its latest accounts "is in line with financial expectations".

Tramlink chief executive Tim Hesketh said the network was "still feeling the effects of the pandemic".

In addition, the network's energy bill has risen from £3.5m to about £6m a year since Russia's invasion of Ukraine began driving up prices.

Mr Hesketh said: "We remain committed to doing all we can to ensure the network can continue to provide a sustainable and convenient option for the thousands of people who rely on it for travel in and around the city."

In a bid to stabilise its finances, the operator recently renegotiated the terms of its considerable loans and it is now believed the network "is in a much more stable and robust position for the coming financial year".