British railways operator Railtrack has reported a full-year loss of £534 million sterling that surprised even the most pessimistic transport analysts.
The group was hit by a charge of £733 million linked to maintenance costs and compensation to train operators following last October's crash at Hatfield, north of London, which killed four people.
"There seems no end in sight to the bad news in the short term, but there is no doubt that on a long-term view the stock is extraordinary undervalued," said Mr Iain Brown, fund manager at Morley Fund Management, which owns just over 4 per cent of Railtrack's share capital.
Railtrack said it would separate its activities into three units, each with their own operating board, saying the new structure would help make employees more accountable and focused.
Railtrack also sought to win over a hostile public - fed up by crippling train delays and widepsread safety concerns - by confirming its executive directors would forego their performance bonuses.
Chief executive Mr Steve Marshall told reporters the group hoped to raise between £3 billion and £4 billion from debt markets over the next couple of years to fund projects to upgrade Britain's creaking rail infrastructure.
But analysts said finding the cash could be problematic as the public might not be keen on further government aid, and Railtrack's ailing share price and balance sheets could deter private-sector fundraising.
Railtrack gave an uncertain outlook for future dividend payments, stating next year's payment would "reflect the progress made at that time in resolving major uncertainties currently facing the business".