Member Article

Go-Ahead Group expect rail business to exceed revenue expectations

Newcastle-registered transport group Go-Ahead says its rail business has benefited from lower energy costs and a better-than-expected performance in the fourth quarter.

The firm, which operates the Southern (including Gatwick Express), Southeastern and London Midland franchises through its 65% owned subsidiary Govia, says passenger revenues across its routes are expected to grow between 5-7%.

Go-Ahead’s bus business delivered “solid” underlying growth in revenue and passenger journeys throughout the year to June 28.

Revenue growth was around the 3.5% market across the deregulated bus division while Go-Ahead’s London bus business showed 5% growth in revenue.

David Brown, group chief executive of Go-Ahead, said: “Overall performance in our bus and rail businesses is good. 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 Department for Transport 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.”

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