WREXHAM & Shropshire has confirmed that its trains will cease running with the departure of the 18.30 from London Marylebone to Wrexham General on Friday this week, after revealing that its revenue has only covered two-thirds of its costs, and that it lost £2.9 million in 2010 alone.
In a statement, the company said that the ‘unprecedented economic environment’ has been a contributing factor.
It said although it had strived to increase passenger numbers on its open access services, it had decided that the business ‘has no prospect of reaching profitability.’
The company added that it was not insolvent, nor was it being placed in administration, and all outstanding financial commitments would be met.
It’s now looking for new jobs for its 55 staff, and all wages and redundancy entitlements will be paid.
The company added that it had tried to move the business into profit. In 2009 the original service of five trains per day was reduced to four, which became three in December. An agreement had been reached with sister company Chiltern Railways to assist with their capacity. The company also ‘investigated opportunities for operational and management synergy between Wrexham & Shropshire and Arriva Trains Wales’, which is also owned by the majority W&S shareholder Deutsche Bahn.
Chairman Adrian Shooter explained: “Regrettably, we have concluded that the potential for further changes to the company's operations, including any synergy with Arriva Trains Wales, will not improve the financial position sufficiently. The shareholders have invested in excess of £13 million in launching the business and funding its losses, and have now concluded that there is no reasonable prospect that Wrexham & Shropshire can become profitable, or offer a return on this investment.”
Mr Shooter added: “Even though we are forced to close the business, we remain extremely proud of what we have achieved with Wrexham & Shropshire; with many stating that we set the standard for all other train companies to follow. I would like to pay tribute to Andy Hamilton, Managing Director, and everyone in the Wrexham & Shropshire team. Our people are the best in the business and have set the standard for others to follow.”