Go-Ahead posts strong quarterly results, acknowledges passenger slowdown

30th Apr 2015 09:26

Passenger transport group Go-Ahead said its bus and rail businesses performed in line with expectations during the third quarter of the year despite disruption due to roadworks and congestion.Its bus division reported slower revenues due to a decline in passenger journeys and contract losses. In London, mileage declined 1.5%, with roadworks and congestion affecting revenues.On the bright side, its rail division trading in line with expectations, with the Southeastern franchise performing better than anticipated.Chief executive David Brown said: "The overall trading performance of both our bus and rail businesses has been satisfactory and our expectations for the full year remain unchanged."We are working closely with Network Rail and other industry partners to minimise the impact on passengers of the major infrastructure works associated with the Government's £6.5bn Thameslink Programme."Shore Capital analysts gave a 'hold' recommendated due to concerns over London Bridge works and the potential impact on Govia Thameslink Railway.Meanwhile, Panmure Gordon was more positive, giving a 'buy' rate and saying: "The combination of strong earnings growth and attractive dividend yield is an exciting proposition, although devolution concerns are likely to weigh on the share price."Shares in Go-Ahead were up 0.71% to 2536p on Thursday at 10:15.