End of year figures show continued recovery for NET following last year's financial restructuring.

New financial figures have revealed that Nottingham Express Transit (NET) is showing signs of continued recovery, with increased customer journeys and reduced losses indicating ongoing improvements and stability across the network.

The figures were published by the operator of the NET concession, Tramlink Nottingham Limited, as part of the annual accounts for the year up to 31 March 2024. They show that following last year’s successful financial restructuring project in partnership with the Department for Transport and Nottingham City Council, the network continues to trade in line with projected expectations, operating from a robust position which looks set to continue into 2025.

Customer confidence in the network remains strong, with passenger journeys increasing year on year, with most recent figures reporting an increase to 15.5m, compared to 14.4m in the prior financial year. Profits also showed signs of improvement, with the company making a gross profit of £8.24m, compared to £7.65m in the previous year, before taking into account COVID relief grants from central government and exceptional fixed asset impairment charges.

Similarly, total losses for the year, before tax and including interest charges, were £26.3m compared to £57.1m for the previous year, which is in line with financial expectations. Last year’s figure was impacted by an impairment charge of £26.7m, to reduce the carrying value of fixed assets in line with revised expected net present value future cashflows over the remainder of the concession in the post-COVID business environment.

Tim Hesketh, CEO of Tramlink said: “We were confident that last year’s financial restructuring project would give our network the security we needed to concentrate on making investments towards improvements to our service, and our most recent financial figures are an indicator of its success. After a challenging few years, it’s promising to see that we’re now in a much stronger position, and we’d like to thank the City Council and Department of Transport for all their support.

“We would also like to thank our customers for their continued support over the last year, during which we delivered a 7.4% increase in passenger kilometres travelled, as well as increased tram reliability. We look forward to building on this in 2025.”

The concession which allows Tramlink to run the NET tram system runs until 2034, and factors in losses in the earlier years due to investments in the system, including expanding the network in 2015 and buying new tram vehicles.

Last year saw NET renew its efforts to crack down on fare evasion, with the relaunch of its zero tolerance campaign. This sees anyone caught travelling without a valid ticket or pass handed a ‘no questions asked’ £70 Penalty Fare Notice. If left unpaid, it leaves the recipient liable for prosecution, with a further fine of up to £1,000 and a criminal record next to their name. The campaign, which remained a key part of NET’s operations throughout 2024, has proven highly successful, with figures revealing a 45% month-on-month rise in Penalty Fare Notices issued during the first month of its launch.

This year also saw the introduction of a new contactless ‘Tap On, Tap Off’ Short Hop travel ticket option which offered an even more convenient way for passengers to travel around Nottingham for less. To access the new travel option, customers simply, tap their bank card or contactless mobile payment device at the start of the journey and again at the end, for £1.50 journeys when travelling within one of NET’s nine short hop zones.

Tim added: “We’re always looking at ways we can improve the service we offer our customers and this year saw us double-down on those efforts. We invested in new technology, made key updates to our ticket systems and strengthened our ties with the local police force, which all in turn ensures we can provide our customers with the very best service.”

“Though the country remains in a challenging economic climate, we have remained committed to ensuring value for money for the many tram users who use the network each day. As such, this year, we’ve worked hard to ensure that any cost increases incurred due to rising inflation and energy costs are kept to a minimum. That’s commitment that will remain into 2025 too.”

For more information about Tramlink, visit https://www.thetram.net/