The results from our rail division were in line with our expectations, following a particularly strong performance last year.

Revenue trends were in line with our expectations, broadly following macro-economic indicators such as Gross Domestic Product (GDP) and employment levels. Revenue increased by 12.6% or £173.6m, to £1,552.0m (2008: £1,378.4m), primarily due to the addition of the London Midland and Gatwick Express operations and continued growth in like for like passenger revenue in Southern and Southeastern.

Operating profit* fell by 20.3% or £15.7m, to £61.5m (2008: £77.2m). The reduction in operating profit* is partly attributable to around £7m of favourable settlements last year (which were not repeated this year) and to higher costs this year for the Southern franchise bid of £3.5m (2008: £0.3m) and £2m for industrial relations issues in London Midland.

Total depreciation for the rail division was £13.0m (2008: £11.3m) and £0.7m of the increase related to London Midland. Capital expenditure was £12.2m (2008 £9.3m), of which £8.1m (2008 £1.9m) was in London Midland and included investment in gating and car parks to enhance revenue.