Nottingham Tram Operator Reports Reduced Losses of £26 Million

The operator of Nottingham’s tram network has announced a decrease in its losses, which now stand at over £26 million, representing a reduction of £31 million compared to the previous year. Filings made public on Companies House indicate that Tramlink Nottingham Limited (TNL) incurred losses amounting to £26.2 million by March 2024. This sum marks a reduction of over 50% from the £57.1 million in losses recorded during the preceding financial year. Tramlink stated that it is “operating from a robust position which looks set to continue” into the upcoming year. Concurrently, passenger numbers grew from 14.4 million to 15.5 million, and turnover saw a 1.5% rise, reaching £64.2 million from £63.3 million. The company implemented fare increases at the start of the year and again during the summer period. According to the documents, inadequate fare revenue still presents “some liquidity risk” for the company; however, the company employs a “prudent approach” to managing its liquidity. The documents further noted that the operations for NET Phase One and Two tram lines, which are subcontracted to TNL, were “operating satisfactorily”. A declaration from Tramlink indicated that the network is continuing “to trade in line with projected expectations”. Tim Hesketh, Tramlink’s chief executive, commented: “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 for Transport for all their support.” He added: “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 substantial loss reported in the previous year was primarily attributed to a reduction in asset values after a review, a process referred to as impairment. Throughout the past year, the operator has persisted in its initiatives to combat fare evasion, including the reintroduction of its “zero tolerance” campaign. Data indicated a 45% month-on-month increase in Penalty Fare Notices issued during the campaign’s initial month.