'Restructure saved city trams from catastrophe'

NOTTINGHAM'S tram boss says a huge drop in the network's financial losses is thanks to a restructure that avoided a “catastrophic” outcome.

- By OLIVER PRIDMORE

The latest accounts for Nottingham’s tram operator show a loss of £1.9 million for the year ending in March, significantly down from the £26 million loss the previous year and the smallest financial loss in a decade.

Passenger numbers increased, the network has been clamping down on fare dodging and working with the police to help people feel safer on trams.

But the CEO of Tramlink says that a major financial restructure agreed upon in December 2023 was the biggest driver behind this year’s relatively small loss.

Tim Hesketh says the latest accounts are the first to show the “true effect” of the 2023 restructure, which means Tramlink’s loans will have to be repaid by 2033 rather than 2030.

The cash reserves the company has to hold were also reduced from double-figure millions to single-figure millions.

Mr Hesketh said: “We would have been in default of those loan agreements, and that could have been a catastrophic outcome for the project.