Go Ahead pre-close trading update
In its pre-close trading update for the year ending 2 July 2016, Go-Ahead Group plc confirmed that it is trading in line with expectations ahead of its full year results announcement due on 8 September 2016.
David Brown, Group Chief Executive, said, ‘Our full year expectations for the Group as a whole and for our bus and rail divisions remain unchanged. On an adjusted basis, 2015/16 will represent another year of strong profit growth for the Group. The company remains in a strong financial position, with robust cashflows. Bus revenues in London and the regions continue to grow, with stronger growth in those regions with growing economies. The company expects to hit the £100m bus profit target on an adjusted basis.’
The company’s regional bus operations have seen revenue and passenger journey growth improving in the fourth quarter, however economic weakness in the north east continues to affect our operations. Excluding the north east, revenue growth is expected to be 2.8% and passenger growth is expected to be 1.2%, the overall revenue growth being 2.1%.
In London, bus revenue and mileage continue to grow strongly with expected full year growth rates of 6.0% revenue and 2.2% mileage. Underlying revenue growth of around 7.0%. has been impacted by reduced QIC payments.