Stagecoach expects the Government’s moves to overhaul the way the rail industry works to mean train companies bear less risk when taking on new contracts.

Chief executive Martin Griffiths said he thought the Government’s pledged overhaul of the way the country’s trains operate would mean revenue risk being shared more equally than it is now.

Many train franchise contracts lock-in the amount train operating companies such as Stagecoach have to pay the Government, regardless of whether the revenue that franchise is generating is as strong as expected.

But as part of the Transport Secretary Chris Grayling’s pledged overhaul of the rail industry - which included splitting up some of the largest franchises and making train companies and Network Rail work more closely - Mr Griffiths thought the burden would now shift.

“While the train operating company will still bear some revenue risk on most new franchises awarded by the Department for Transport, we anticipate that its exposure to revenue risk will be significantly less than on franchises awarded in the last few years, such as the Virgin Trains East Coast franchise,” he said.