Go-Ahead bus operations to deliver bigger proportion of profit

20th Jun 2013 07:32

Train and bus group Go-Ahead said while its overall expectations for the full year remain unchanged, it now expect a greater proportion of operating profit to come from the bus division.The transport operator said both its bus and rail divisions saw improved growth in passenger numbers in recent weeks, following the effect of adverse weather previously reported in the third quarter."Our bus division continues to trade well and is on track to deliver a better than expected result for the full year, whilst rail profits will be impacted by higher than expected costs in the division," the group said in a statement. Looking ahead to next year, Go-Ahead expects its bus division to continue to make good progress towards its bus operating profit target of £100m by 2015/16. In contrast, rail profitability is expected to be lower next year due to Southeastern's unprofitable extension period and the challenging trading conditions in the Southern franchise."We await the detail of the Government Spending Review later this month and continue to emphasise the importance of investment in public transport in ensuring sustainable economic growth in the UK," it added.The firm said it remains in a good financial position with strong cash generation and a robust balance sheet, underpinning the dividend policy. CJ