‘Robust trading’ for Go-Ahead
In a pre-close trading update for the six months ending 28 December 2013, Go-Ahead described its trading as ‘robust’. According to the update, the Group remains in a good financial position with strong cash generation and a solid balance sheet. Go-Ahead said its operations outside London continue to perform well and it remains confident in its full year expectations for the bus division. Growth in fare paying customers was partially offset by lower concessionary passenger numbers. During the second quarter, Go North East submitted its response to Tyne and Wear’s Integrated Transport Authority’s consultation on bus services in the area. It recommended partnership working as the right outcome for both passengers and tax payers in the north east. Go-Ahead’s regulated bus operations continue to deliver robust results with strong underlying revenue (7%) and mileage growth (2.5%).
Group Chief Executive of Go-Ahead, David Brown, said, ‘I am pleased with the continued robust performance across our operations. Our bus and rail divisions have both seen commercial revenue growth in the year to date. Performance in our Southern franchise was better than anticipated, and as a result our forecasts for the full year to 28 June 2014 are slightly ahead of our previous expectations.’
‘Our bus operations continue to perform well and we remain confident in our target to achieve bus operating profit of £100m by 2015/2016. Our continued development of smart and mobile ticketing across our bus business is progressing well and in an industry first, we were delighted to launch “the key” on our Southern services, enabling passengers to travel on our trains and TfL services using just their smartcard.’