Go-Ahead’s ‘continuing resilience’
Go-Ahead has reported a continued strong performance in its latest pre-close trading statement, covering the year ending 29 June 2013. The company’s deregulated bus operations outside London continue to perform well and it claims its expected revenue growth for the full year of 8% remains sector leading, whilst passenger journeys are anticipated to go up 3%, with greater increases in fare paying passengers continuing to be partly offset by weaker concessionary performance. The bus division is expected to benefit from a number of small cost initiatives in the second half of the year. Some of these have been delivered ahead of plan and it believes the division is now on track to deliver a better than expected result for the full year. Go-Ahead’s London operations continue to perform strongly despite the expected slower growth in the second half. Its revenue growth for the full year is expected to be 12.5%, with a total mileage increase of 8%.
Group Chief Executive of Go-Ahead, David Brown, said, ‘I am pleased to report continuing resilience across our operations. Both our bus and rail divisions have seen improved growth in passenger numbers in recent weeks, following the effect of adverse weather previously reported in the third quarter. Our bus division continues to trade well and is on track to deliver a better than expected result for the full year as we start to see the benefits of cost initiatives coupled with continued revenue growth. We are making good progress towards our target to organically grow bus operating profit to £100m by 2015/16. Whilst our overall expectations for the full year remain unchanged, we now expect a greater proportion of Group operating profit to come from the bus division.’