Want to keep up to date on Welsh politics? Sign up and get political news sent straight to your inbox Thank you for subscribing We have more newsletters Show me See our privacy notice Invalid Email

Politicians and a passengers’ group have expressed concern after it emerged that Arriva Trains Wales’ pre-tax profits rose by 18.6% last year to an all-time high of £28.2m.

The rail operator plans to invest just £2.8m during 2017 while paying a dividend to its parent company of £20m, its latest accounts show.

In total, the rail operator has stripped £150m in dividends out of the Welsh rail network since it took over in 2003.

There has been increasing anger about overcrowding on trains from commuters on Valleys services in particular.

The company, which is owned ultimately by the German government, blames overcrowding on a shortage of available rolling stock.

Arriva Trains Wales’ 15-year franchise is due to end next year, and the company is one of four bidders for the next franchise.

Its profits have risen steadily over the years it has been running services.

How Arriva Trains Wales' profits have soared Companies House This shows how the amount of money Arriva UK has taken out of the Wales business has grown Companies House Add in ticket sales to the chart, and it is clear what has driven Arriva's soaring profits Companies House

Peter Kingsbury, who chairs Rail Future Wales, the users’ group for train passengers, said: “The profits of Arriva Trains Wales have been on an upward trend for a number of years now.

“Rail Future would not question the right of train operators to make some level of profit return on their operations. But there has to be a question mark over the level of profit increase in relation to turnover, given the concerns about overcrowding expressed by passengers in the South Wales Valleys, for example, over the last year or so.

“There’s an argument for saying that some of the additional revenue should be put back in to improve the passenger experience. Instead it is ultimately being sent to its owners in Germany.”

Video Loading Video Unavailable Click to play Tap to play The video will start in 8 Cancel Play now

A spokesman for Economy Minister Ken Skates, whose portfolio includes transport, said: “The Welsh Labour Government has been very clear that in planning for the next Wales and Borders franchise due to begin in 2018 we will not be allowing the kind of excessive profits we have seen in the current franchise which was let by the UK Government.

“The next franchise is one that we are developing here in Wales and we have made clear to all the bidders that excess profit will be reinvested back into the transport system here in Wales, incentivising choice and driving down costs for the passenger.”

Plaid Cymru leader Leanne Wood said: “Our policy is that any rail profits should be put back into rail services. It is a source of deep frustration that profits are not being ploughed into improving services and reducing fares.

How profit margins compare Companies House

“As a frequent train traveller, I know many people are fed up to the back teeth with delays, outdated carriages, overcrowding and poor value for money.

“Much of what rail travellers put up with today can be traced back to the poor franchise agreement which commenced back in 2003. That franchise didn’t allow for an increase in passenger numbers. That’s why we don’t have enough rolling stock.

“The next rail franchise has to be better and it has to ensure profits are put into improving the service and keeping fares as low as possible. I, and many other travellers, would be very disappointed if the Labour government in Wales fails to achieve at least that in its negotiations.”

What Arriva said....

An Arriva Trains Wales spokesman defended the company’s record and insisted that dividends paid to Arriva UK Trains Ltd were not sent to Germany but reinvested into Arriva businesses. The spokesman said: “In 2016, £109m was invested into UK transport by Arriva.

"The business has funded investment in trains, buses, station improvements, innovation, and jobs and skills – all to the benefit of UK passengers and communities. Our continued investment is reflected in 82% of our customers being satisfied according to independent industry watchdog, Transport Focus.”