M6toll cuts losses after surprise hike in revenue
The M6toll continued to whittle away at its losses in the months running up to its takeover by Australian group IFM Investors, new figures reveal.
Despite fears that a lack of major roadworks on the M6 would hit its figures, the m6toll actually increased traffic numbers to 17.5 million vehicles in 2016.
Operators Midland Expressway described it as "an excellent performance" as it had been expecting numbers to fall because of the end of the southbound roadworks that had driven a surge in traffic to the toll road the previous year.
Instead income from tolls rose to just over £80 million, a £500,000 increase on the previous year.
In its financial report for 2016, just filed at Companies House, Midland Expressway said its performance had been buoyed by the growth in the economy and continued relatively low fuel prices.
Looking ahead, Midland Expressway said it expected "strong growth" this year due to roadworks on both the M6 and M5.
This summer the 27-mile motorway was bought by Australian-based IFM Investors, a pension fund-owned investment manager that believes the UK's only pay-as-you-go motorway could provide "stable and secure returns".
The toll road has yet to make a profit since it opened in 2003 but, following the takeover, there was a vote of confidence from a string investors, including the UK's Pension Protection Fund, which jointly backed a £500m investment in the m6toll.
While the toll road did better than expected in 2016, the new figures show income from the rest of the business, particularly the M6toll motorway service station was down 9.8 per cent to £3m.
And a £432,000 expense for the takeover meant earnings were down marginally to £72 million. After costs such as £57m of interest on the £650million owed to Macquarie for building the motorway in the first place, Midland Expressway made a pre-tax loss for the year of £15.3m, £3m down on the £18.3m loss in 2015.
Looking ahead, Midland Expressway says it expects further strong growth to return to the M6toll as congestion continues to return to the competing M6, particularly with predicted disruption from the forthcoming HS2 high speed rail line construction works.
