A COMPANY which runs troubled Southern Railway will face profit sanctions for the remainder of its franchise following a botched timetable overhaul.

Go-Ahead's GTR network will make no profit this year and will make a reduced profit for the remainder of its franchise under sanctions imposed by the Department for Transport.

GTR (Govia Thameslink Railway) will contribute £15 million towards improvements in services for passengers.

That's on top of the £15 million the operator has already contributed towards passenger compensation since the timetable disruption.

But it said it decided not to strip Go-Ahead of the franchise, which it said would "cause further and undue disruption for passengers, and is not an appropriate course of action".

The Department for Transport said: "Performance after the May timetable change was unacceptable.

"This action announced today holds GTR to account appropriately and will benefit passengers.

"The department will continue to monitor closely the performance of GTR, particularly during the upcoming December timetable change.

"These measures do not make GTR immune from further sanctions in the event of any subsequent failure to perform."

Go-Ahead boss David Brown apologised for the "poor service" suffered by passengers after timetable changes in May.

He said: "Since the introduction of the interim timetable in July, performance has greatly improved, and now includes over 200 new services for customers, with further additional services to be introduced this month.

"This agreement will deliver additional benefits to passengers to be agreed in consultation with our customers."

Despite the GTR profit-sharing agreement with the Government, Go-Ahead said group-wide results remained on track with City forecasts.

GTR chief executive Charles Horton quit in June over the timetable fiasco after being singled out for blame by Mr Grayling.

Go-Ahead owns 65% of its rail operation, Govia, with the remaining 35% owned by French group Keolis.

It is the largest rail operation in the UK, responsible for over 30% of all UK passenger rail journeys through its rail franchises, GTR and Southeaster