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Trading statements

Go-Ahead maintains FY forecasts

22 June 2017 07:21

Go-Ahead Group has maintained its full-year expectations in a pre-close trading update.

The group said it remained in a strong financial position, with good cash generation and a robust balance sheet.

It said its regional bus division continued to deliver revenue growth broadly in line with expectations and slightly ahead of wider industry trends.

It said strong growth in passenger journeys in some regions had been offset by softer performance in other operating areas.

And it said growth in revenue and passenger numbers was also slightly subdued as a consequence of the restructuring of selected route networks to match passenger demand and reduce costs.

In its rail division, the group said that in Southeastern, passenger growth continued to slow, putting pressure on passenger revenue.

It said: "As previously reported, this pressure has been offset by a cost efficiency programme.

"The franchise continues to contribute to the Department for Transport (DfT) through its profit share mechanism. The DfT has started the tender process for the South Eastern franchise and Govia has expressed an interest.

"London Midland's financial performance remains strong; revenue and passenger numbers are growing ahead of the wider industry.

"This strong performance has enabled the franchise to continue making profit share payments to the DfT; which are expected to continue for the remainder of the contract, to October 2017.

"We await the DfT's announcement regarding the outcome of the West Midlands franchise competition, for which we are shortlisted along with one other bidder.

"There has been no significant industrial action on Southern services in the last five months and, consequently, service and performance levels have stabilised, allowing the company to deliver more reliable rail services to customers.

"Disappointingly, the ASLEF union has called for an overtime ban for Southern train drivers which, if it goes ahead, will result in unnecessary disruption for customers.

"GTR remains fully committed to resolving these issues to provide improved services for customers and reduce uncertainty for our stakeholders."

Story provided by StockMarketWire.com

Related Company: GOG

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