A 14-MONTH long industrial dispute cost a train company an estimated £4million, it has been revealed.

However, the Arriva group still recorded a 30 per cent increase in profit for its rail division last year.

Ray Price, managing director of Arriva Trains Northern, today vowed to put the industrial turmoil behind him and make his train company one of the best in the country.

He spoke out following the release of a new strategy for the year ahead -- just three weeks after a pay settlement was finally agreed with the conductors.

It includes developing customer care, making its fleet of trains more efficient and working more closely with other rail companies.

Arriva runs the TransPennine Express service in East Lancashire, which travels through Burnley, Accrington and Blackburn.

Since January 2002, its conductors have staged regular 24-hour walkouts, heaping misery on rail users whose trains were cancelled.

Mr Price said: "Last year was a challenging year, but now it is time to look forward for our customers, employees and the business.

"All too often this industry spends its time dwelling on the past. I believe we need to be firmly focused on what lies ahead. At Arriva Trains Northern we will be strengthening our focus on safety, service delivery and customer care. I am sure there will be cynics out there who will look to knock us at every opportunity, but without setting out our vision and having something to aim for, nothing will change and that is not what this company is about.

"Our overall aim is to position the company as one of the best performing train operators in the UK."

The Arriva group, which includes the Arriva Trains Northern franchise, announced yesterday that underlying profits were up 11 per cent to £102.1 million.

Operating profits in its rail business increased almost 30 per cent to £14.9 million.

Finance director Steve Lonsdale, said: "If it hadn't been for the strikes it would have been even better.

"It's very hard to quantify, but £3million to £4million would be a reasonable estimate of what it cost, but, even on the strike days, performance was good and, as the strikes went on, customers got used to the strike timetable.