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109-522: Network Rail Limited is the owner (via its subsidiary Network Rail Infrastructure Limited, which was known as Railtrack plc before 2002) and infrastructure manager of most of the railway network in Great Britain . Network Rail is a non-departmental public body of the Department for Transport with no shareholders, which reinvests its income in the railways. Network Rail's main customers are

218-428: A dividend imputation system, wherein companies can attach franking credits or imputation credits to dividends. These franking credits represent the tax paid by the company upon its pre-tax profits. One dollar of company tax paid generates one franking credit. Companies can attach any proportion of franking up to a maximum amount that is calculated from the prevailing company tax rate: for each dollar of dividend paid,

327-429: A briefing to contractors was released ahead of an invitation to tender for Midland Mainline Electrification project work to extend electrification to Nottingham and Sheffield. This scheme is expected to cost £1.3 billion. Network Rail has undertaken numerous schemes to develop its own renewable electrical generation footprint, which is used in part to power the operational railway. In January 2014, Network Rail opened

436-1101: A business corporation is to pay dividends to its owners. A successful company is one that can pay dividends regularly and presumably increase the rate as time goes on." Other studies indicate that dividend-paying stocks tend to offer superior long-term performance relative to the overall market at least in developed economies, relative to a stock index such as the S&;P 500 or Dow Jones Industrial Average or relative to stocks that do not pay dividends. Several explanations have been proposed for this outperformance such as dividends being associated with value stocks which are themselves associated with long-term outperformance; being more durable in crashes or bear markets ; being associated with profitable companies exhibiting high levels of free cashflow ; and being associated with mature, unfashionable companies that are overlooked by many investors and thus an effective contrarian strategy . Assett managers at Tweedy, Browne and Capital Group have suggested dividends are an effective measure of

545-453: A busy commuter railway might have blocks a few hundred metres long. A disadvantage of fixed blocks is that the faster trains are permitted to run, the longer the stopping distance, and therefore the longer the blocks need to be. This decreases a line's capacity. With moving block , computers are used to calculate a 'safe zone', behind each moving train, which no other train may enter. The system depends on precise knowledge of where each train

654-653: A central street, accommodating more than 3,000 people. Various divisions, including engineering, logistics, operations (including timetable planning), IT, procurement, planning and finance departments, and Route Services Supply Chain operations have been transferred to the Quadrant. In 2009, allegations appeared in the media from the Transport Salaried Staffs' Association concerning treatment of Network Rail employees. Former chief executive Iain Coucher

763-479: A company declaring or distributing dividends is required to pay a Corporate Dividend Tax in addition to the tax levied on their income. The dividend received by the shareholders is then exempt in their hands. Dividend-paying firms in India fell from 24 percent in 2001 to almost 19 percent in 2009 before rising to 19 percent in 2010. However, dividend income over and above ₹ 1,000,000 attracts 10 percent dividend tax in

872-503: A consultation exercise on insolvency and corporate governance. The aim was to address concerns which had emerged where companies in financial distress were still able to distribute "significant dividends" to their shareholders. A requirement has been proposed under which the largest companies would be required to publish a distribution policy statement covering dividend distribution. The law in England and Wales regarding dividend payment

981-445: A deduction of retained earnings . Dividends paid does not appear on an income statement , but does appear on the balance sheet . Different classes of stocks have different priorities when it comes to dividend payments. Preferred stocks have priority claims on a company's income. A company must pay dividends on its preferred shares before distributing income to common share shareholders. Stock or scrip dividends are those paid out in

1090-479: A dividend of £1 has led to a larger drop in the share price of £1.31, because the tax rate on capital losses is higher than the dividend tax rate. However in many countries the stock market is dominated by institutions which pay no additional tax on dividends received (as opposed to tax on overall profits). If that is the case, then the share price should fall by the full amount of the dividend. Finally, security analysis that does not take dividends into account may mute

1199-496: A fibre optic and copper cable network that is located mainly within trackside troughing routes on the former British Rail Telecommunications network. (It is the largest private telecoms network in the UK). Network Rail operates several analogue radio networks that support mobile communication applications for drivers and lineside workers which consist of base stations, antenna systems and control equipment. The National Radio Network (NRN)

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1308-406: A form of investment income of the shareholder, usually treated as earned in the year they are paid (and not necessarily in the year a dividend was declared). For each share owned, a declared amount of money is distributed. Thus, if a person owns 100 shares and the cash dividend is 50 cents per share, the holder of the stock will be paid $ 50. Dividends paid are not classified as an expense , but rather

1417-428: A given company's overall financial status. Shareholders in companies that pay little or no cash dividends can potentially reap the benefit of the company's profits when they sell their shareholding, or when a company is wound down and all assets liquidated and distributed amongst shareholders. However, data from professor Jeremy Siegel found stocks that do not pay dividends tend to have worse long-term performance, as

1526-445: A group, than the general stock market and also perform worse than dividend-paying stocks. Taxation of dividends is often used as justification for retaining earnings, or for performing a stock buyback , in which the company buys back stock, thereby increasing the value of the stock left outstanding. When dividends are paid, individual shareholders in many countries suffer from double taxation of those dividends: In many countries,

1635-526: A large part in decisions about railways, such as the Beeching Axe . In the UK , building or rebuilding a railway usually requires an Act of Parliament . In many countries, rail subsidies allow unprofitable, but socially desirable, railways to continue to operate. Dividend A dividend is a distribution of profits by a corporation to its shareholders , after which the stock exchange decreases

1744-543: A litany of problems in the areas she was responsible for. Michelle Handforth resigned after infrastructure problems left hundreds of passengers stranded in carriages in London, one of the latest issues with the lines outside Paddington Station . The Office of Rail and Road was already investigating poor reliability and punctuality in the Wales and Western region. During February 2011, it was announced that Network Rail had begun

1853-579: A net debt of approximately £8 billion by 2003. During May 2001, Railtrack announced that, despite making a pre-tax profit before exceptional expenses of £199m, the £733m of costs and compensation paid out over the Hatfield crash had plunged Railtrack from profit into a loss of £534m, and it approached the government for funding, which it controversially used to pay a £137m dividend to its shareholders in May 2001. Months later, Railtrack sought another bailout from

1962-638: A pre-tax expense. The usually fixed payments to holders of preference shares (or preferred stock in American English) are classed as dividends. The word dividend comes from the Latin word dividendum ("thing to be divided"). In the financial history of the world, the Dutch East India Company (VOC) was the first recorded (public) company ever to pay regular dividends. The VOC paid annual dividends worth around 18 percent of

2071-402: A scheduled dividend, or declare an unscheduled dividend at any time, sometimes called a special dividend to distinguish it from the regular dividends. (more usually a special dividend is paid at the same time as the regular dividend, but for a one-off higher amount). Cooperatives , on the other hand, allocate dividends according to members' activity, so their dividends are often considered to be

2180-451: A set amount (the number of shares you own multiplied by the dividend per share). By doing this, you buy more shares when the price is low and fewer when the price is high. Additionally, the fractional shares that are purchased then begin paying dividends, compounding your investment and increasing the number of shares and total dividend earned each time a dividend distribution is made. Governments may adopt policies on dividend distribution for

2289-515: A shareholder is income of the shareholder and may be subject to income tax (see dividend tax ). The tax treatment of this income varies considerably between jurisdictions. The corporation does not receive a tax deduction for the dividends it pays. A dividend is allocated as a fixed amount per share, with shareholders receiving a dividend in proportion to their shareholding. Dividends can provide at least temporarily stable income and raise morale among shareholders, but are not guaranteed to continue. For

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2398-443: A slight discount. In some cases, the shareholder might not need to pay taxes on these re-invested dividends, but in most cases they do. Utilizing a DRIP is a powerful investment tool because it takes advantage of both dollar cost averaging and compounding. Dollar cost averaging is the principle of investing a set amount of capital at recurring intervals. In this case, if the dividend is paid quarterly, then every quarter you are investing

2507-437: A small amount of income from commercial property estate. In February 2019 Network Rail sold its commercial property business consisting of 5,200 properties, mainly railway arches, to a consortium of Telereal Trillium and Blackstone Property Partners for £1.46bn. Network Rail works in five-year funding cycles called "Control Periods" (CP for short). The government specifies what is needed from Network Rail and sets out how much

2616-589: Is and how fast it is moving. With moving block, lineside signals are not provided, and instructions are passed direct to the trains. It has the advantage of increasing track capacity by allowing trains to run much closer together. The system is only used on very few independent networks such as underground lines. Most rail systems serve a number of functions on the same track, carrying local, long-distance and commuter passenger trains, and freight trains. The emphasis on each varies by country. Some urban rail transit , rapid transit and light rail systems are isolated from

2725-590: Is carried out mostly by the principal train operating company serving that station; however, in a few cases the train operating company does not serve the station. For example, Hinckley is served by CrossCountry , but it is managed by East Midlands Railway . As of April 2018, Network Rail manages 20 stations directly, with Clapham Junction and Guildford becoming managed stations on 1 April 2018. The stations Network Rail operate are: National London stations Glasgow Central and Liverpool Lime Street stations are divided into high and low-level stations –

2834-733: Is currently undertaking a £38 billion programme of upgrades to the network, including Crossrail , electrification of lines , in-cab signalling , new inter-city trains , upgrading Thameslink , and a new high-speed line . For investment projects, as opposed to routine maintenance, Network Rail has developed an eight-stage process designed to minimise and mitigate risks. This is known as the Governance for Railway Investment Projects (GRIP), previously known as “Guide to Rail Investment Projects”. The stages are as follows: Each stage delivers an agreed set of outputs to defined quality criteria. The process has been criticised as cumbersome by some and it

2943-406: Is decided where tunnels pass. Rail transport systems affect the human geography. Large cities (such as Nairobi ) may be founded by a railroad passing through. Historically, when a station has been built outside the town or city it is intended to serve, that town has expanded to include the station, or buildings (especially Inns ) sprung up near the station. The existence of a station may increase

3052-684: Is not part of the Network Rail network, such as the line between Harrow-on-the-Hill and Amersham being owned by London Underground. Following an initial period in which Network Rail established itself and demonstrated its competence in addressing the principal challenges of improving asset condition, reducing unit costs and tackling delay, the Government's Rail Review in 2004 said that Network Rail should be given responsibility for whole-industry performance reporting, timetable development, specification of small and medium network enhancements, and

3161-463: Is not used. Declaration date – the day the board of directors announces its intention to pay a dividend. On that day, a liability is created and the company records that liability on its books; it now owes the money to the shareholders. In-dividend date – the last day, which is one trading day before the ex-dividend date , where shares are said to be cum dividend ('with [ in cluding] dividend'). That is, existing shareholders and anyone who buys

3270-424: Is only able to make a distribution out of its accumulated, realised profits, "so far as not previously utilised by distribution or capitalisation, less its accumulated, realised losses, so far as not previously written off in a reduction or reorganisation of capital duly made". The United Kingdom government announced in 2018 that it was considering a review of the existing rules on dividend distribution following

3379-417: Is operated by Colas Rail, primarily using locomotives from Colas' and Network Rail's own fleets, but have also used locomotives hired from other companies such as Direct Rail Services , GB Railfreight and Europhoenix as required. From 1997 to 2014 (inclusive), passenger numbers have more than doubled, following little growth in the previous decades. To cope with the increasing passenger numbers, Network Rail

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3488-664: Is operated by Network Rail. A line closure for engineering or renewal works is known as a possession. Network Rail has an internal infrastructure database known as GEOGIS. The system uses codes for four-digit Track IDs to identify which line at any location is referred to. The first number refers to track direction, with values of 1 (Up), 2 (Down), 3 (Reversible/Bi-directional), or 4 (Merry Go Round Loop). The second number refers to track use, which can be 1 (Main or Fast), 2 (Slow, Local or Relief), 3 (Goods), 4 (Single line), 5 (Loop), 6 (Terminal or Bay), 7 (Crossover), 8 (Other or Engine), or 9 (Single Siding). The third and fourth numbers refer to

3597-672: Is proposed to replace it with a new process with the acronym PACE- Project Acceleration in a Controlled Environment. For financial and other planning purposes, Network Rail works within 5-year "Control Periods", each one beginning on 1 April and ending on 31 March to coincide with the financial reporting year. These periods were inherited from Railtrack, so that the earlier ones are retrospective, and not necessarily of 5 years duration. They are as follows: Railway infrastructure manager Ownership and operation of these two components varies by location. In some places (notably, most of North America) private railway companies own and operate both

3706-423: Is that of the shareholder, although a tax obligation may also be imposed on the corporation in the form of a withholding tax . In some cases, the withholding tax may be the extent of the tax liability in relation to the dividend. A dividend tax is in addition to any tax imposed directly on the corporation on its profits. A dividend paid by a company is not an expense of the company. Australia and New Zealand have

3815-658: Is the number of dividend payments within a single business year. The most usual dividend frequencies are yearly, semi-annually, quarterly and monthly. Some common dividend frequencies are quarterly in the US, semi-annually in Japan, UK and Australia and annually in Germany. Some companies have dividend reinvestment plans , or DRIPs, not to be confused with scrips. DRIPs allow shareholders to use dividends to systematically buy small amounts of stock, usually with no commission and sometimes at

3924-650: The European Union (EU), separation of infrastructure and operation is mandated by law , so train operation is performed by another type of company, a railway undertaking which must be provided with non-discriminatory access to any railway path within the EU. Outside the European Union it is possible that the same company is owning the infrastructure and also operating trains and in that case this designation might not make sense. Infrastructure managers charge for

4033-754: The Northern Hub . However as of September 2017 the two Manchester stations remained under the operatorship of Arriva Rail North . There are a small number of stations on the National Rail network that are not owned by Network Rail. As of 2022 these are: Network Rail has several training and development sites around Britain. These include sites in York, Peterborough, Derby, Leeds, Walsall and Larbert which provide refresher courses, and train staff in new equipment. Advanced Apprentice Scheme trainees are trained at Network Rail's Westwood training centre for

4142-670: The West Coast Main Line had suffered from spiralling costs, rising from an estimated £2 billion to roughly £10 billion. This programme suffered failures that were technical as well as managerial, such as the moving block signalling apparatus being immature for such a busy mixed-traffic mainline. In 2000, reports emerged that Railtrack may not be able to go through with its planned commitment to purchase section 2 of High Speed 1 , resulting in disruption and uncertainty for that programme as well. In February 2001, Steve Marshall, Railtrack's chairman, warned that Railtrack could have

4251-445: The human geography (location of settlements). The rail transport system may in turn feedback into the human geography. The permanent way of a system must pass through the geography and geology of its region. This may be flat or mountainous, may include obstacles such as water and mountains. These determine, in part, the intrinsic nature of the system. The slope at which trains run must also be calculated correctly. In this stage, it

4360-404: The joint-stock company , paying dividends is not an expense ; rather, it is the division of after-tax profits among shareholders. Retained earnings (profits that have not been distributed as dividends) are shown in the shareholders' equity section on the company's balance sheet – the same as its issued share capital. Public companies usually pay dividends on a fixed schedule, but may cancel

4469-425: The record date . This is an important date for any company that has many shareholders, including those that trade on exchanges, to enable reconciliation of who is entitled to be paid the dividend. Existing shareholders will receive the dividend even if they sell the shares on or after that date, whereas anyone who bought the shares will not receive the dividend. It is relatively common for a share's price to decrease on

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4578-638: The Australian case of Miles v Sydney Meat-Preserving Co Ltd (1912). However in Sumiseki Materials Co Ltd v Wambo Coal Pty Ltd (2013) the Supreme Court of New South Wales broke with this precedent and recognised a shareholder's contractual right to a dividend. Cash dividends are the most common form of payment and are paid out in currency, usually via electronic funds transfer or a printed paper check . Such dividends are

4687-641: The Train Operating Companies. During March 2011, the British government announced that the Great Western Main Line would be electrified as far as Bristol Temple Meads. Within four years, this programme, which was headed by Network Rail, was beset by poor planning and cost overruns, leading to the shortcomings being scrutinised by Parliament. Specifically, the projected cost had increased from £1.2 billion to £2.8 billion by

4796-525: The UK, as of March 2014, Network Rail is well underway in the UK implementation of GSM-R to replace its legacy National Radio Network (NRN) and Cab Secure Radio (CSR) systems currently in use. Network Rail operates a large variety of DMUs, locomotives and rolling stock to perform safety checks and maintenance (this fleet is not to be confused with the combined rolling stock assets of Rail Delivery Group members who work in combination as National Rail ). As well as

4905-626: The United States, shareholders of corporations face double taxation - taxes on both corporate profits and taxes on distribution of dividends. The rules in Part 23 of the Companies Act 2006 (sections 829-853) govern the payment of dividends to shareholders. The Act refers in this section to "distribution", covering any kind of distribution of a company's assets to its members (with some exceptions), "whether in cash or otherwise". A company

5014-463: The after-tax dividend. For example, if the tax of capital gains T cg is 35%, and the tax on dividends T d is 15%, then a £1 dividend is equivalent to £0.85 of after-tax money. To get the same financial benefit from a, the after-tax capital loss value should equal £0.85. The pre-tax capital loss would be ⁠ £0.85 / 1 − T cg ⁠ = ⁠ £0.85 / 1 − 0.35 ⁠ = ⁠ £0.85 / 0.65 ⁠ = £1.31. In this case,

5123-427: The business. A free cash flow payout ratio greater than 100% means the company paid out more cash in dividends for the year than the "free" cash it took in. A dividend that is declared must be approved by a company's board of directors before it is paid. For public companies in the US, four dates are relevant regarding dividends: The position in the UK is very similar, except that the expression "in-dividend date"

5232-405: The company and EDF was signed to provide more solar energy. In May 2021, the Government announced that Network Rail is to superseded by a new body, Great British Railways , in 2023. Network Rail is a not-for-profit organisation . The majority of funding comes from a mix of direct grants and borrowing from the UK and Scottish Governments, payments from train and freight operators and previously

5341-413: The company's interim financial statements. Other dividends can be used in structured finance . Financial assets with known market value can be distributed as dividends; warrants are sometimes distributed in this way. For large companies with subsidiaries, dividends can take the form of shares in a subsidiary company. A common technique for "spinning off" a company from its parent is to distribute shares in

5450-437: The company's record as of the record date will be paid the dividend, while shareholders who are not registered as of this date will not receive the dividend. Registration in most countries is essentially automatic for shares purchased before the ex-dividend date. Payment date – the day on which dividend cheques will actually be mailed to shareholders or the dividend amount credited to their bank account. The dividend frequency

5559-603: The decline in share price, for example in the case of a price–earnings ratio target that does not back out cash; or amplify the decline when comparing different periods. The effect of a dividend payment on share price is an important reason why it can sometimes be desirable to exercise an American option early. Some believe company profits are best re-invested in the company with actions such as research and development, capital investment or expansion. Proponents of this view (and thus critics of dividends per se) suggest that an eagerness to return profits to shareholders may indicate

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5668-544: The delivery of route-specific utilisation strategies (RUS). Some of these are functions which Network Rail already had; others – such as the obligation to devise route utilisation strategies – were transferred to Network Rail from the Strategic Rail Authority , a non-departmental public body, part of the UK government. The SRA was abolished in November 2006. Network Rail initially sub-contracted much of

5777-408: The dividend tax rate. If there is an increase of value of stock, and a shareholder chooses to sell the stock, the shareholder will pay a tax on capital gains (often taxed at a lower rate than ordinary income ). If a holder of the stock chooses to not participate in the buyback, the price of the holder's shares could rise (as well as it could fall), but the tax on these gains is delayed until the sale of

5886-578: The electrification of other lines, including Bristol Parkway to Temple Meads and Didcot to Oxford, was also postponed. During 2011, work commenced to extend the electrification of the Midland Main Line , including to both Corby and Nottingham. In July 2017, it was announced the then-Secretary of State for Transport Chris Grayling that the electrification scheme north of Kettering to Derby, Nottingham and Sheffield had been cancelled and that bi-mode trains would be used instead. However, in May 2022,

5995-622: The end of 2015, while the project's timetable was also delayed to the extent that the government had to request Hitachi to retrofit the new high speed trainsets procured under the Intercity Express Programme with diesel engines as well as electric traction. In July 2017, the government announced that, in response to the programme's continued difficulties, the scope of the electrification scheme had been decreased; specifically, it would only be completed as far as Thingley Junction, two miles (3.2 km) west of Chippenham, while

6104-426: The ex-dividend date by an amount roughly equal to the dividend being paid, which reflects the decrease in the company's assets resulting from the payment of the dividend. Book closure date – when a company announces a dividend, it will also announce the date on which the company will temporarily close its books for share transfers, which is also usually the record date. Record date – shareholders registered in

6213-511: The first five months of their apprenticeship and then are trained further at HMS  Sultan in Gosport over seven 2-week periods or five 3-week periods (throughout their second and third year) of their apprenticeship, using a combination of Royal Navy facilities and a specially installed training centre. All courses are taught by VT Flagship (part of Babcock International ) in the first year but apprentices are trained by Network Rail staff in

6322-426: The form of additional shares of the issuing corporation, or another corporation (such as its subsidiary corporation). They are usually issued in proportion to shares owned (for example, for every 100 shares of stock owned, a 5% stock dividend will yield 5 extra shares). Nothing tangible will be gained if the stock is split because the total number of shares increases, lowering the price of each share, without changing

6431-442: The form of assets from the issuing corporation or another corporation, such as a subsidiary corporation. They are relatively rare and most frequently are securities of other companies owned by the issuer, however, they can take other forms, such as products and services. Interim dividends are dividend payments made before a company's Annual General Meeting (AGM) and final financial statements. This declared dividend usually accompanies

6540-449: The government can afford to contribute. The Office of Rail and Road (ORR) then sets the level of fixed income that Network Rail is allowed to charge and assesses the amount of money needed by Network Rail to run efficiently. The last Control Period ran from 2014 to 2019; 1 April 2019 was the start of Control Period 6 . In 2019, government funding for train operating companies amounted to £4.1 billion, paying access charges to use

6649-555: The government. On 7 October 2001, Railtrack plc was placed into railway administration under the Railways Act 1993, following an application to the High Court by the then Transport Secretary , Stephen Byers . Network Rail Ltd. was created with the express purpose of taking over Britain's railway infrastructure control; this was achieved via its purchase of Railtrack plc from Railtrack Group plc for £500 million; Railtrack plc

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6758-506: The hands of the shareholder with effect from April 2016. Since the Budget 2020–2021, DDT has been abolished. Now, the Indian government taxes dividend income in the hands of investor according to income tax slab rates. The United States and Canada impose a lower tax rate on dividend income than ordinary income, on the assertion that company profits had already been taxed as corporate tax . In

6867-466: The high-level stations are all termini used primarily by the main inter-city services to those stations. The low-level stations are through routes on local commuter networks that are largely separate from other routes to the main station; these platforms are not managed by Network Rail, but instead by the rail operator that primarily uses them, ScotRail and Merseyrail respectively. Network Rail operated Gatwick Airport station until January 2012 when it

6976-444: The impact on normal services and revenue. Each transport system represents a contribution to a country's infrastructure , and as such must make economic sense or eventually close. From this, each has a particular role or roles. These may change with time but they affect the specifications of each particular system. Rail transport systems are built into the landscape , including both the physical geography (hills, valleys, etc.) and

7085-478: The infrastructure and rolling stock (for example, Union Pacific ). In the United Kingdom, the infrastructure is owned and maintained by Network Rail while rolling stock is largely owned and operated by private railway companies. In countries with nationalized rail systems such as China , both the infrastructure and rolling stock are owned and operated directly or indirectly by the national government. In

7194-430: The infrastructure work to private maintenance companies, such as Carillion and First Engineering ; other sub-contractors perform specialist work or additional labour, such as Prima Services Group, Sky Blue, Balfour Beatty, Laboursite, BCL, Atkins (Atkins Rail) and McGinleys. In October 2003, Network Rail announced that it would take over all infrastructure maintenance work from private contractors, following concerns about

7303-554: The latter is a brand rather than an organisation, used to inform and promote a nationwide network of passenger railway services. The majority of Network Rail lines also carry freight traffic; some lines are freight only. A few lines that carry passenger traffic are not part of the National Rail network (such as the Tyne and Wear Metro and the London Underground ). Conversely, a few National Rail services operate over track which

7412-431: The left hand side of the balance sheet, the equity account on the right side should decrease an equivalent amount. This means that a £ x dividend should result in a £ x drop in the share price. A more accurate method of calculating the fall in price is to look at the share price and dividend from the after-tax perspective of a shareholder. The after-tax drop in the share price (or capital gain/loss) should be equivalent to

7521-913: The management having run out of good ideas for the future of the company. A counter-argument to this position came from Peter Lynch of Fidelity investments, who declared: "One strong argument in favor of companies that pay dividends is that companies that don’t pay dividends have a sorry history of blowing the money on a string of stupid diworseifications"; using his self-created term for diversification that results in worse effects, not better. Additionally, studies have demonstrated that companies that pay dividends have higher earnings growth, suggesting dividend payments may be evidence of confidence in earnings growth and sufficient profitability to fund future expansion. Benjamin Graham and David Dodd wrote in Securities Analysis (1934): "The prime purpose of

7630-434: The maximum level of franking is the company tax rate divided by (1 − company tax rate). At the current 30% rate, this works out at 0.30 of a credit per 70 cents of dividend, or 42.857 cents per dollar of dividend. The shareholders who are able to use them, apply these credits against their income tax bills at a rate of a dollar per credit, thereby effectively eliminating the double taxation of company profits. In India,

7739-461: The media concerning the knighthood awarded to John Armitt in the 2012 New Year Honours for services to engineering and construction. Armitt was Chief Executive of Network Rail at the time of the 2007 Grayrigg derailment and the family of a victim of the accident criticised the award, which coincidentally was conferred on the same day that Network Rail were prosecuted for the accident. In 2023, one of Network Rail's managing directors resigned after

7848-447: The multiple units and locomotives, Network Rail own and operate a large stock of rolling stock for particular testing duties and track maintenance. Network Rail also hire freight locomotives from various freight operators including DB Cargo UK , Freightliner , Colas Rail and GB Railfreight amongst others to operate engineers' trains in support of maintenance and renewal work. Network Rail's Infrastructure Monitoring fleet of test trains

7957-399: The national system in the cities they serve. Some freight lines serving mines are also isolated, and these are usually owned by the mine company. An industrial railway is a specialized rail system used inside factories or mines. Steep grade railways are usually isolated, with special safety systems. The permanent way trails through the physical geography. The tracks' geometry is limited by

8066-455: The negative consequences that the fragmentation of the railway network had introduced to both safety and maintenance procedures. Railtrack was severely criticised for both its performance for infrastructure improvement and for its safety record. The Hatfield train crash on 17 October 2000 was a defining moment in the collapse of Railtrack. The immediate major repairs undertaken across the whole British railway network were estimated to have cost in

8175-528: The network, including Crossrail , electrification of lines and upgrading Thameslink . In May 2021, the Government announced its intent to replace Network Rail in 2023 with a new public body called Great British Railways . In 2022 it was announced that this process would be delayed. Britain's railway system was built by private companies, but it was nationalised by the Transport Act 1947 and run by British Railways until re-privatisation which

8284-415: The new company to the old company's shareholders. The new shares can then be traded independently. A dividend payout ratio characterizes how much of a company's earnings (or its cash flow) is paid out in the form of dividends. Most often, the payout ratio is calculated based on dividends per share and earnings per share : A payout ratio greater than 100% means the company paid out more in dividends for

8393-547: The number of commuters who live in a town or village and so cause it to become a dormitory town . The transcontinental railroad was a large factor in American colonization of the Western frontier . China's railroad expansion into Tibet may have similar consequences. Rail transport systems are often used for purposes they were not designed for, but have evolved into due to changes in human geography. Politics can play

8502-543: The ongoing modernisation of the railway network by replacing track and signalling, continues to be carried out by private engineering firms under contract. The biggest renewals projects include the multibillion-pound upgrade of the London – Glasgow West Coast Main Line , which was completed in 2008, the Thameslink Programme to upgrade the north–south railway through London and work on the part of Crossrail which

8611-418: The order of £ 580 million and Railtrack had no idea how many more 'Hatfields' were waiting to happen because it had lost considerable in-house engineering skill following the sale or closure of many of the engineering and maintenance functions of British Rail to external companies; nor did the company have any way of assessing the consequence of the speed restrictions it was ordering. These restrictions brought

8720-472: The payments as payments for services rendered was held to be unlawful. After a stock goes ex-dividend (when a dividend has just been paid, so there is no anticipation of another imminent dividend payment), the stock price should drop. To calculate the amount of the drop, the traditional method is to view the financial effects of the dividend from the perspective of the company. Since the company has paid say £ x in dividends per share out of its cash account on

8829-550: The physical geography. The presence of a work train on a given section of track will temporarily decrease the capacity of the route. The normal method in such operations is to cease other traffic altogether during the track 'occupation'. Services may be diverted by an alternative route, if available; alternatively, passenger services may be maintained using a replacement bus service . It is therefore more economically viable to plan such track occupations for periods of reduced usage (e.g. 'off-peak', overnight or holiday times) to minimise

8938-698: The position for six years. He noted that as Network Rail moved to a "new phase in its development" it was appropriate for a new chairman to lead it there. Network Rail also has a 15-year lease on Square One in Manchester with 800 staff in one of Manchester's largest refurbished office spaces. During June 2012, work was completed on the company's new national centre, known as the Quadrant:MK . Based in Milton Keynes about five minutes' walk from Milton Keynes Central , it comprises four buildings connected to

9047-442: The price of the stock by the dividend to remove volatility. The market has no control over the stock price on open on the ex-dividend date, though more often than not it may open higher. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-invested in the business (called retained earnings ). The current year profit as well as

9156-439: The private train operating companies (TOCs), responsible for passenger transport, and freight operating companies (FOCs), who provide train services on the infrastructure that the company owns and maintains. Since 1 September 2014, Network Rail has been classified as a "public sector body". To cope with rapidly increasing passenger numbers , (as of 2021) Network Rail has been undertaking a £38 billion programme of upgrades to

9265-573: The process of reorganising its operational structure into nine semi-autonomous regional entities, each with their own managing director; the first two units to be created were Scotland and Wessex regions. The reorganisation has been interpreted as a move back towards vertical integration of track and train operations. In December 2016, the Transport Secretary, Chris Grayling announced that Network Rail would lose sole control of track maintenance and repairs, and instead would share this with

9374-430: The protection of shareholders and the preservation of company viability, as well as treating dividends as a potential source of revenue. Most countries impose a corporate tax on the profits made by a company. Many jurisdictions also impose a tax on dividends paid by a company to its shareholders (stockholders), but the tax treatment of a dividend income varies considerably between jurisdictions. The primary tax liability

9483-408: The public through telephones located at level crossings. GAI-Tronics provides many of the telephones sited on trackside and at level crossings. They also provide Public Access Help Points on platforms and stations to provide passengers with easy access to Information and Emergency control centres. GSM-R radio systems are being introduced across Europe under EU legislation for interoperability. In

9592-498: The quality of work carried out by certain private firms and spiralling costs. In 2007, it was announced that the number of track renewal contractors would be reduced from six to four; Amey / SECO , Balfour Beatty , Babcock First Engineering and Jarvis plc . Network Rail has expanded its in-house engineering skills, including funding of apprenticeship and foundation degree schemes, and has reported significant savings from transferring work away from contracting companies. Additional work

9701-488: The rail network, £2.1 billion and freight £58 million. In 2019, it spent £3.1 billion on renewals (restoring existing infrastructure back to how it was when new) and £3.2 billion on enhancements, with the rest spent on maintenance and other costs. Network Rail covers 20,000 miles of track, and 30,000 bridges, tunnels and viaducts. They claim to run the world's largest third rail network. In February 2004, an operations centre at Waterloo station in London

9810-447: The railway network to an almost total standstill and drew significant public ire. According to railway historian Christian Wolmar , Railtrack's board panicked in the wake of Hatfield. Railtrack's first chief executive, John Edmonds, had pursued a deliberate strategy of outsourcing engineers' work wherever possible with the goal of reducing costs. Various major schemes being undertaken by Railtrack had also gone awry. The modernisation of

9919-443: The railway tracks, signals, overhead wires, tunnels, bridges, level crossings and most stations, but not the passenger or commercial freight rolling stock, other than its limited departmental stock . While it owns over 2,500 railway stations, it manages only 20 of the biggest and busiest of them as all the other stations are managed by the various train operating companies (TOCs). Network Rail should not be confused with National Rail ,

10028-437: The retained earnings of previous years are available for distribution; a corporation is usually prohibited from paying a dividend out of its capital. Distribution to shareholders may be in cash (usually by bank transfer) or, if the corporation has a dividend reinvestment plan , the amount can be paid by the issue of further shares or by share repurchase . In some cases, the distribution may be of assets. The dividend received by

10137-963: The second and third years. Network Rail bought a residential centre from Cable and Wireless in the Westwood Business Centre near Coventry for leadership development. The company and other industry partners such as VolkerRail and Balfour Beatty also operate a Foundation Degree in conjunction with Sheffield Hallam University . In 2008, Network Rail piloted its first qualification in "track engineering". It has been given permission to develop courses equivalent to GCSE and A-levels. Network Rail operates various essential telecommunication circuits for signalling and electrification control systems, train radio systems, lineside communications, level crossing CCTV, station information and security systems as well as more general IT and business telephony needs. The fixed bearer network infrastructure comprises transmission systems and telephone exchanges linked by

10246-420: The shares on this day will receive the dividend, and any shareholders who have sold the shares lose their right to the dividend. After this date the shares becomes ex dividend . Ex-dividend date – the day on which shares bought and sold no longer come attached with the right to be paid the most recently declared dividend. In the United States and many European countries, it is typically one trading day before

10355-402: The tax rate on dividend income is lower than for other forms of income to compensate for tax paid at the corporate level. A capital gain should not be confused with a dividend. Generally, a capital gain occurs where a capital asset is sold for an amount greater than the amount of its cost at the time the investment was purchased. A dividend is a parsing out a share of the profits, and is taxed at

10464-503: The total value of the shares held. (See also Stock dilution .) Stock dividend distributions do not affect the market capitalization of a company. Stock dividends are not includable in the gross income of the shareholder for US income tax purposes. Because the shares are issued for proceeds equal to the pre-existing market price of the shares; there is no negative dilution in the amount recoverable. Property dividends or dividends in specie ( Latin for " in kind ") are those paid out in

10573-527: The track number, which can be any number from 00 to 99 inclusive, and are usually numbered sequentially. In 2006, Network Rail made public a high-tech plan to combat the effects of slippery rail . This plan involves the use of satellites for tracking trouble areas, water-jetting trains and crews using railhead scrubbers, sand sticks and a substance called Natrusolve, which dissolves leaf mulch. Network Rail owns more than 2,500 railway stations, divided into six categories . Management and operation of most of them

10682-778: The use of its network. The operation of the railway is through a system of control, originally by mechanical means, but nowadays more usually electronic and computerized. Signalling systems used to control the movement of traffic may be either of fixed block or moving block variety. Most blocks are 'fixed' blocks, i.e. they delineate a section of track between two defined points. On timetable, train order, and token-based systems, blocks usually start and end at selected stations. On signalling-based systems, blocks usually start and end at signals . Alternatively, cab signalling may be in use. The lengths of blocks are designed to allow trains to operate as frequently as necessary. A lightly used branch line might have blocks many kilometres long, whilst

10791-481: The value of the shares for almost 200 years of existence (1602–1800). In common-law jurisdictions, courts have typically refused to intervene in companies' dividend policies, giving directors wide discretion as to the declaration or payment of dividends. The principle of non-interference was established in the Canadian case of Burland v Earle (1902), the British case of Bond v Barrow Haematite Steel Co (1902), and

10900-509: The world's largest solar-powered bridge, adjacent to the remains of the old Blackfriars Railway Bridge , across the River Thames . The roof of the new railway bridge is covered with 4,400 photovoltaic panels, providing up to half of the energy requirement for London Blackfriars station . Solar panels are used at various locations across Network Rail's property portfolio, including stations and depots. In August 2022, an agreement between

11009-450: The year than it earned. Since earnings are an accountancy measure, they do not necessarily closely correspond to the actual cash flow of the company. Hence another way to determine the safety of a dividend is to replace earnings in the payout ratio by free cash flow . Free cash flow is the business's operating cash flow minus its capital expenditures. It's a measure of how much incoming cash is "free" to pay out to stockholders and/or to grow

11118-439: Was also accused of financial impropriety involving unspecified payments to his business partner Victoria Pender during his tenure at Network Rail. An internal investigation held by Network Rail in 2010, vetted by its auditors PricewaterhouseCoopers , uncovered no evidence of wrongdoing. An independent enquiry headed by Anthony White QC in 2011 further examined the claims, but also exonerated Coucher. Critical commentary appeared in

11227-542: Was begun in 1994 and completed in 1997. As a part of the privatisation process, the railway infrastructure, passenger and freight services were separated into separate organisations. Between 1994 and 2002, the infrastructure was owned and operated by Railtrack , a privately-owned company. A spate of accidents, including the Southall rail crash in 1997 and the Ladbroke Grove rail crash in 1999 called into question

11336-669: Was clarified in 2018 by the England and Wales Court of Appeal in the case of Global Corporate Ltd v Hale [2018] EWCA Civ 2618. Certain payments made to a director/shareholder had been treated by the High Court as quantum meruit payments to Hale in his capacity as a company director but the Appeal Court reversed this judgment and treated the payments as dividends. At the time of payment they had been treated as "dividends" payable from an anticipated profit. The company subsequently went into liquidation ; an attempt to recharacterise

11445-586: Was developed specifically for the operational railway; it provides radio coverage for 98% of the rail network through 500 base stations and 21 radio exchanges. The Radio Electronic Token Block RETB system is based on similar technology as the NRN and ORN but provides data communication for signalling token exchange as well as voice communication. Fixed communication at trackside is provided by telephone. These are primarily provided for signallers to communicate with train crew, via telephones mounted on signal posts, and with

11554-572: Was opened, which was operated jointly by Network Rail and South West Trains . This was the first full collaboration of its kind since privatisation, and it is regarded as a model for other areas of the network, with a further six integrated Network Rail + TOC Control Centres having opened since then, at Blackfriars , Croydon (Leading Control for Thameslink), Swindon , Birmingham New Street , Glasgow and, most recently, Liverpool Street and South Wales based in Cardiff Canton. Track renewal,

11663-526: Was taken back in-house after the serious accident at Potters Bar and other accidents at Rotherham and King's Cross led to Jarvis's collapse into administration in March 2010. The company moved its headquarters to Kings Place, 90 York Way, from 40 Melton Street, Euston, in August 2008. Two months later, Sir Ian McAllister announced that he would not stand for re-election as chairman of Network Rail after holding

11772-413: Was then renamed and reconstituted as Network Rail Infrastructure Limited . The transaction was completed on 3 October 2002. The former company had thus never ceased to exist but continued under another name: for this reason Network Rail Infrastructure Ltd was the defendant in later prosecutions in respect of events which had occurred in the days of Railtrack. Network Rail owns the infrastructure, including

11881-567: Was transferred to Southern , and Fenchurch Street until November 2014 when it was transferred to c2c . Network Rail took over management of Bristol Temple Meads and Reading in April 2014. A DfT franchise report in 2014 stated Network Rail's intention to subsume more major stations into Network Rail's directly operated portfolio. The report earmarked York for Network Rail management, as well as Manchester Oxford Road and Manchester Victoria which are currently undergoing major rebuilding as part of

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