Nevertheless, it was only in the half-year ending 31 December 1854 that the company made a net profit, and this allowed a small dividend on the first preference shares only. The financial position of the company was one of continuing indebtedness, in fact dependency on the LNWR, and the LNWR decided that the time had come to bring the matter to a head. The C&HR would be worked as part of the LNWR system, paying the C&HR shareholders 1% above its own working expenses rate after an initial period. The arrangement was to start on 1 July 1856.