‘Good’ trading for Go-Ahead
Overall performance for the Go-Ahead Group was described as ‘good’ by its Group Chief Executive, David Brown, in a pre-close trading update for the year ending 28 June 2014. In the company’s deregulated bus business, solid underlying growth in revenue and passenger journeys continued into the fourth quarter. The segment experienced growth in both commercial and concessionary travel. Mileage increased due to investment in its services and commercial contract wins. Mileage growth for the full year is expected to be around 1.5%, which has resulted in higher associated costs. Its London bus business performed well during the year. Mileage growth declined slightly in the fourth quarter due to the timing of contract renewals. However, looking ahead to the next financial year it expects mileage to be largely flat with revenue growth anticipated to be broadly in line with inflation. It expects its bus division to continue to make good progress towards the operating profit target of £100m by 2015/16.
Group Chief Executive of Go-Ahead, David Brown, said, ‘Our full year expectations for our bus operations remain unchanged and we now expect the rail division to deliver operating profit ahead of our previous expectations, with second half profits slightly lower than first half. In May, we were delighted to be awarded the Thameslink, Southern and Greater Northern franchise by the DfT and we are working hard to prepare for the start of the contract in September 2014. We look forward to delivering customer improvements and value for money for taxpayers through this important and complex franchise. Our regulated and deregulated bus operations continue to deliver a consistent performance and we remain on course to achieve our operating profit target of £100m by 2015/16.’