Member Article

Bus operator aims for £100m profit

Bus and train operator Go-Ahead has said it aims to make £100m from its routes by 2016.

The announcement was made at a bus investor event, and Group chief executive, David Brown said the profits would be achieved through delivery of quality services, innovation and marketing and cost efficiency.

Brown’s announcement coincided with the company’s trading statement, which revealed significant growth (21%) in its London bus routes during the Olympics.

The firm said it was awaiting further information on its Thameslink bid, following the Department for Transport’s postponement of rail franchise tenders in light of the West Coast scandal.

Brown said: “I am pleased to report strong growth across our regulated and deregulated bus businesses, demonstrating the effectiveness of the Group’s strategy of providing high quality, cost efficient and locally focused bus services.

“We believe there is significant potential to grow this core part of our business and today have announced a target to organically grow bus operating profit to £100m by 2015/2016.

“We remain committed to operating in the UK rail market and are pleased to report strong underlying growth in passenger revenue across our three franchises.

“The London 2012 Games took place during the first quarter of our financial year and I am really proud of the key role Go-Ahead played in helping to deliver a highly successful transport network for the Olympics and Paralympics. Whilst we are encouraged by our performance in the first quarter, we remain suitably cautious about the medium term wider economic outlook.”

This was posted in Bdaily's Members' News section by Tom Keighley .