Go-Ahead lifts operating profit forecast

13th Dec 2011 07:27

Bus and train operator Go-Ahead said trading in the last six months has been robust and its now expects to deliver operating profit slightly ahead of previous company expectations, primarily at its rail unit, for the full year to 30 June 2012. Both bus and rail divisions saw strong trading in the last six months and, in particular, its smallest franchise, London Midland, achieved double digit growth in both passenger revenue and volumes.Chief executive David Brown commented, "While we remain suitably cautious about the medium term wider economic outlook, trading in both our bus and rail divisions continues to be strong, with record numbers of passengers using our services."Go-Ahead's bus operations outside London have remained resilient and are expected to achieve revenue growth, excluding acquisitions, of around 3.5% for the first half of the financial year.Bus operations in London are performing well after it signed new contracts. Go-Ahead said its cashflow and balance sheet remain strong, providing support in the event of a downturn in the economy and allowing flexibility to pursue further value-adding opportunities.--cj