Tyne Tunnels operator TT2 Ltd has faced a dip in turnover and profits, despite achieving record traffic levels. The company remains committed to enhancing infrastructure and service quality.
TT2’s new accounts reveal significant financial details for the year ending March 2024, highlighting both operational challenges and achievements.
Decline in Financial Performance
Tyne Tunnels operator TT2 Ltd has reported a decrease in turnover and profits, despite achieving historical peak traffic levels. The company’s new accounts reveal that turnover has dropped to £27.2 million for the year ending March 2024, a decline from £33.8 million in the preceding year. Concurrently, operating profit plummeted to £11.49 million from £19.87 million.
However, total income from toll usage increased from £24.5 million to £29.2 million, which TT2 attributes to a rise in the ‘shadow toll’ – contractual payments made by the North East Combined Authority (NECA) to TT2. These payments are adjusted annually according to the retail price index (RPI).
Record Traffic Levels
The year witnessed a record-breaking traffic volume of 19.5 million vehicles. This surge was primarily driven by the implementation of open road tolling in 2021. The system, which replaced traditional toll booths, utilises number plate recognition technology to streamline traffic flow and reduce emissions.
The benefits of this system are evident. It has not only facilitated smoother traffic movement but also contributed to TT2’s goal of offering a reliable and environmentally-friendly service.
Enforcement Measures
Earlier this year, TT2 sought and obtained a High Court Writ to pursue drivers with county court judgements for unpaid tolls who have ignored calls for payment.
The pertinent drivers are likely to face enforcement notices, detailing that High Court Enforcement Officers may visit their properties to collect the debt or seize goods.
These measures underscore the company’s commitment to ensuring toll compliance and maintaining financial health through enforcement actions.
TT2’s Continuous Investments
TT2 Ltd has consistently invested in tunnel infrastructure, customer service, and employee development. Despite financial challenges, the company allocated £1.8 million towards administrative expenses, focusing on infrastructure improvements, staff, and customer support.
Director Michael Donn highlighted in the accounts that the 2023/24 financial year marked the company’s sixteenth year of operation, meeting all performance benchmarks without incurring penalties. This reflects the company’s dedication to maintaining high operational standards and customer satisfaction.
Technological Advancements
The introduction of various technological advancements has been pivotal for TT2. The company has introduced enhancements such as Google Pay and Apple Pay to streamline toll payments, thereby reducing the incidence of unpaid tolls.
Additionally, TT2 has bolstered customer understanding through targeted communication campaigns. This strategy has resulted in a nearly 24% reduction in income from Unpaid Toll Charge Notices, signalling improved compliance.
Community Contributions
TT2’s community involvement is noteworthy, with over £144,000 donated to local causes. Beneficiaries include St John’s Ambulance, St Oswald’s Hospice, Percy Hedley Foundation, and various other local charities and food banks.
These contributions underscore TT2’s commitment to social responsibility and community support, reflecting a broader corporate ethos of giving back to society.
Overall, TT2 Ltd continues to navigate financial hurdles while making substantial investments in infrastructure and community support.
The company’s dedication to improving service quality and operational efficiency remains evident, aligning with its long-term strategic goals.