Edinburgh Trams has exceeded all financial expectations, with pre-tax profits climbing almost 600 per cent to £1.6m last year.

Rising customer numbers - with total customer journeys up by 19 per cent to 6.6 million - helped the service exceed City of Edinburgh Council's original business plan in 2013, which predicted a profit of £333,000 for 2017.

Revenues for the 12 months to end December 2017 were £13m, up 26 per cent on 2016 and 40 per cent above 2015.

“In 2016 we returned our first operating profit a year ahead of schedule and, in 2017, financial performance has continued to exceed expectations," said Edinburgh Trams’ managing director Lea Harrison.

“The introduction of a new timetable at the start of the year played a major part in this success, with a 23 per cent increase in services encouraging more people to take the tram when visiting the city for business or pleasure.

(Image: PA)

“We’ve also worked hard to reduce journey times, with a trip between Edinburgh Airport and the city centre taking less than 35 minutes.

“Alongside these operational improvements, we’ve continued our commitment to providing the best possible service to our customers, rolling out a series of successful initiatives. These include the introduction of a contactless payment system and running additional trams when the city hosts major events."

Accounts files at Companies House show Edinburgh Trams also recorded its highest ever usage in one day, with more than 42,000 customer journeys recorded on 9th June 2017, for the Robbie William’s concert at BT Murrayfield.

“These are fantastic results for the tram operator and help demonstrate why the city’s tramway plays a vital part in Edinburgh’s integrated transport network," said Transport for Edinburgh chief executive George Lowder.

“2018 is already showing sound performance and we look forward to a positive political decision at the end of the year around taking trams to Newhaven.”

The trams, which are fully owned by the City of Edinburgh Council, increased pre-tax profits from £252,101 in 2016.

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Mark Lea Harrison, who was appointed managing director in March 2017, was paid £96,229 in 2017, while directors Charles Monheim, Andrew Neal and Charlene Wallace were paid £12,000, £6,000 and £4,311 respectively - unchanged from their remuneration in 2016.

Employee payroll costs, including wages, social security and pension costs, rose 15 per cent from £3.9m in 2016 to £4.5m last year. Staff numbers rose from an average of 140 in 2016 to 163 last year.