Network Rail has unveiled pre-tax profits of £1.2bn and claimed that train punctuality was at record levels.

It added that the year to the end of April had been good, despite receiving a record £14m fine from the Office of Rail Regulation when engineering work over the new year period overran.

"Lessons have been learnt following the engineering overrun," said chairman Sir Ian McAllister. "Changes have been made to make the planning and execution of such big improvement schemes more robust."

But the rail regulator warned that passengers faced years of weekend disruption, with the situation unlikely to improve until 2014.

It has recommended Network Rail receive funding of £26.5bn for the next five years, some £3bn less than the company wants. A final decision will be made in October.