TRANSPORT giant FirstGroup has showed how the post-Hatfield track repair programme had slammed the brakes on growth in its rail division.

Revenue from its three train franchises had been well ahead but finished the financial year £6m down on a year earlier.

FirstGroup said it had received some compensation from Railtrack but would continue to press the rail infrastructure firm to cover losses incurred by First Great Western, First Great Eastern and First North Western.

Turnover in the rail division for the year to March 31 was £761.2 m, compared to £767.4m in the previous year.

Despite the reduction in passenger numbers, operating profit from the rail division was ahead by 22 per cent at £56.2m.

Across the whole group, turnover was up 14 per cent at £2.05bn, while pre-tax profit was 13 per cent up at £136.8m.

Moir Lockhead, chief executive, believed a series of fare promotions was slowly bringing passengers back to its services. But he said: "Until the Hatfield accident, performance in all three of our train operating companies was excellent. However, revenues were severely impacted by the disruption to the network."

He said that safety was the company's "number one priority" and added it was creating a "zero tolerance" culture among staff.

FirstGroup said it had become the first inter-city rail company to introduce airline style safety cards, while it has also launched a series of safety training workshops for staff.

The company's bus division saw operating profits fall to £105m from £111.4m a year earlier after an increase in labour costs.

Passengers volumes increased by one per cent, buoyed by simplified routes and fare structures in urban areas.