Member Article

Pretax profits rise 10.9% to £44.7 million for Newcastle transport firm Go-Ahead

Newcastle-headquartered transport firm Go-Ahead has announced a 10.9% increase in pretax profits to £44.7 million, up from £40.3 million, as the company released half year results for the six months ended 27 December 2014 this morning.

The company reported that overall results were in line with management expectations, with the full year expectations remaining unchanged.

Key features of this mornings release include dus operating profit up 8.4% to £45.1 million, reportedly in line with strategic target.

In addition, rail operating profit was down 2.9% to £10.2 million, with margins reducing to 0.9%. Contribution to the Government increased to £108.2 million.

A challenging start to the GTR franchise was revealed. Investment is said to already be underway to improve performance for passengers.

Go-Ahead is working with Network Rail to minimise disruption to rail passengers during major infrastructure projects, in particular the £6.5 billion Thameslink Programme.

The firm has also been shortlisted for Northern and TransPennine Express franchises. Exploring overseas bus and rail opportunities.

Moreover, strong cashflow and reduction in adjusted net debt were other highlights of the release.

David Brown, Group Chief Executive, said: “I am pleased with the Group’s financial performance in the first half of the year, with overall operating profit of £55.3.

“Through our regional bus operations, Go-Ahead has kept people in towns and cities across the UK moving over the last three decades and we have heavily invested in our operations over this time.

“In the last five years alone, we have invested over £170 million in our regional bus services. Our passengers have given us a record 92% satisfaction score, reflecting the importance we place on listening to our customers, delivering value and responding innovatively to their evolving requirements.

“We firmly believe that public transport is best delivered through working in partnership, with strong alliances between operators and local authorities. We believe that increased rail infrastructure investment is essential to improve services and we welcomed the Government’s £38bn programme of infrastructure investment last year.

“While an investment programme of this scale will deliver enormous benefit in the long term, it will inevitably result in disruption while infrastructure improvements are made.We acknowledge the significant effect this has on passengers and are working closely with Network Rail to minimise the impact of this disruption.

“Overall, the Board’s expectations for the full year results remain unchanged, with second half profits expected to be similar to those in the first half of the year for both our bus and rail divisions.

“The Group remains in a good financial position, with strong cash generation and a robust balance sheet supporting our progressive dividend policy and allowing flexibility to pursue value-adding opportunities.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →