THE region’s newest rail firm has said it remains “bullish”

about its prospects – despite recording a multimillion pound loss for the second year in succession.

Grand Central Railway, which operates four daily services between Sunderland and London King’s Cross, made an £8.4m loss last year – on the back of a £8.7m loss in 2008.

According to its recentlypublished financial statement for the year ending December 31, 2009, turnover, however, grew from £7.1m to £11.5m.

Grand Central blamed the loss on preparation for a new service from West Yorkshire to London, which launched in May.

The report said passenger numbers on services from the North-East – which were extended from three to four in August last year – had shown a steady improvement throughout 2009.

Accounts show that the lease of rolling stock by Grand Central cost £3.8m last year. The bill for employees’ wages and salaries was £2.5m, while the firm’s directors were paid £189,930 in total.

The report also suggested directors would not receive a dividend – at their own request – and said equity shareholders continued to provide all funding for the firm.

Referring to the West Yorkshire launch, Grand Central spokesman Rupert Brennan- Brown said: “When you start new railway services, you have to lease new trains, recruit additional staff and provide premises along the route.

“You are not actually turning a wheel in revenue.”

Mr Brennan-Brown said that the increase in turnover reflected the success of Grand Central’s North-East services and said that, had the West Yorkshire operation not been established, the company would have been in profit.

He said: “We are bullish in light of the North-Eastern service.”

Mr Brennan-Brown added: “The owners are comfortable with the figures because they are in line with projections and we are confident that we will move into a profitable situation next year.”

Grand Central, which has repeatedly come near the top of passenger satisfaction ratings, raised ticket prices in May.

About 1,400 passenger journeys are made each day on its services from the North-East.

The firm overcame opposition from the former GNER and a series of technical difficulties to launch its first trains in December 2007.

Earlier this year, it was granted an extension by the rail regulator to run trains until December 2016.