UK train lessors pay £391m in dividends as public ownership enters debate

The bosses of three companies that rent trains to Britain’s railways received a combined £3.5m last year, while their companies distributed £391m to shareholders. The payouts have drawn criticism from rail unions as the government considers whether the public sector should own trains rather than lease them from private businesses, according to Guardian Business (direct).

The figures came from accounts published in the week ministers announced a new strategy for railway vehicles. They put executive rewards and shareholder returns at the centre of a wider argument about who should finance Britain’s trains. The companies, known as rolling stock companies or Roscos, own trains and rent them to railway operators. According to the rail regulator, operators spent more than £4bn on those leases last year, while the leasing companies recorded a net profit margin of 18.5% — the share of revenue remaining as net profit.

Three companies, £391m for shareholders

Porterbrook Holdings paid £80m in dividends, distributions to shareholders, and raised chief executive Mary Grant’s pay by more than 10% to £1.44m. Eversholt Rail distributed £200m in 2025, shortly before CK Hutchison sold it to Beacon Rail. Its departing chief executive, Mary Kenny, received £1.33m. Angel Trains paid shareholders £111m and chief executive Malcolm Brown £700,000. The three executives’ pay exceeded that of the heads of Network Rail and HS2, the report said.

The RMT rail union said the three largest train lessors had distributed £2.4bn in dividends over a decade. It accused the businesses of benefiting at passengers’ expense and urged the government to introduce a levy — an additional charge — on their profits. RMT general secretary Eddie Dempsey welcomed the prospect of public ownership for future new trains, but argued that passengers facing a cost-of-living crisis needed more immediate help. The union wants the budget referred to in the report to include a levy funding a 3.4% fare reduction.

RMT general secretary Eddie Dempsey said exploring publicly owned trains was welcome, but passengers needed action now.

Investment meets the ownership question

Ministers are considering whether Great British Railways, the public body, should own trains directly instead of relying on private-sector leases. Transport Secretary Heidi Alexander told the Labour conference that ownership should be pursued if it offered the best outcome for taxpayers and passengers. The proposal remains under consideration; the source does not report a decision to replace the leasing model.

Porterbrook defended its role by pointing to more than £1bn invested since 2020 in new trains, fleet improvements, traction technology and railway infrastructure. A spokesperson said it was actively looking to invest another £1bn in the years ahead. The company also said its group businesses were UK tax resident and had paid £82m in tax over three years. Shareholder funding, it argued, enables substantial railway investment.

Angel Trains, which is incorporated in Jersey and falls within the UK tax system, said fleet decisions should deliver the best results for passengers while preserving conditions that attract investment. It said it would continue working with the government and Great British Railways. Eversholt and its new owner, Beacon Rail, were approached for comment, according to the report.

The next developments to watch are the government’s assessment of direct train ownership and its response to the RMT’s proposed profit levy. Those are distinct choices: one concerns how future trains are financed and held, while the other seeks to use lessors’ profits to reduce fares now.