Profits soar at Go-Ahead with more rail routes
RAIL and bus group Go-Ahead yesterday saw its share price jump 3.17 per cent as it reported record passenger numbers across its services.
Pre-tax profits for the year to 28 June soared to £91.2m, up 44 per cent from £63.1m in the first half of 2013, as revenue rose to £2.7bn, up five per cent on £2.57bn.
The results allowed Go-Ahead to lift its dividend for the first time since 2008, with a 4.3 per cent rise.
Chief executive David Brown said: “The group performed very well in the financial year with our bus and rail divisions both delivering strong results, which were significantly ahead of our initial expectations.”
The transport company, founded in 1987, highlighted in particular its “key achievement” – winning the London Thameslink rail franchise contract.
The franchise, won by Go-Ahead’s majority-owned Govia joint partnership with French transport group Keolis, will start this month, running for the next seven years.
The Govia partnership, which already runs the Southeastern and London Midland rail services, also extended its existing Southern franchise and won the Great Northern franchise this year.
Govia is in the hunt for other franchises, including being shortlisted for the Northern and TransPennine Express rail services.
Go-Ahead’s bus operations also performed well, with operating profit up 11 per cent to £83.5m, and said it was on course for its target of achieving operating profit of £100m by 2015-16.