Go-Ahead expects to report 'good' FY performance as demand recovers

11th Jul 2022 07:56

(Sharecast News) - Transport operator Go-Ahead said on Monday that it expects to report a "good" performance for the year to 2 July as passenger demand recovers.

In the regional bus division, there has continued to be a a steady recovery in passenger demand, with commercial volumes across the business now more than 85% of pre-pandemic levels, it said.

In some areas, there have been "particularly encouraging" volumes in recent weeks, with pre-pandemic volumes being recorded on some days. "These trends give us confidence in the continuation of passenger recovery in the coming months."

The company now expects the division to deliver operating profit before exceptional items ahead of that of the prior two years.

It expects the London & International bus division to deliver operating profit before exceptional items at least in line with pre-pandemic underlying profitability levels. In 2019, this was £51.2m.

UK rail, meanwhile, is expected to deliver operating profit before exceptional items within the range set out in the interim results of £25m to £30m following the successful start of GTR's new National Rail contract on 1 April.

As far as international rail is concerned, Go-Ahead said it continues to progress its improvement plans in Baden-Württemberg, Germany, although financial penalties relating to operational performance have been slightly higher than anticipated in the period.

The company expects to deliver an operating loss before exceptional items within the range set out in interim results of £15m to £20m.

Chief executive Christian Schreyer said: "Passenger numbers on public transport have continued to recover from the pandemic and in certain parts of the UK, such as Manchester, our buses are as busy as they were before Covid-19. We are encouraged to see so many people using buses and trains and we expect a busy summer ahead, particularly in tourist areas."