Go-Ahead sees full-year results ahead of expectations

12th Dec 2013 07:12

- Sees full-year ahead of forecasts- Robust half-year trading- Eyes bus profit of 100m pounds by 2015/2016Transport group Go-Ahead said its bus and rail divisions enjoyed a strong interim performance and, as a result, expects full-year results to come in a touch above previous expectations. "We continue to see a robust performance across both divisions and as a result of better than expected performance in our Southern franchise, our forecasts for the full year are slightly ahead of our previous expectations," the FTSE-250 bus and train operator said in a company statement. In October Go-Ahead set a new ambitious target for profit growth in its bus division and confirmed it remains on target to achieve bus operating profit of £100m by 2015/2016. Go-Ahead said robust revenue growth continued into the second quarter across all three franchises; the Southern (including Gatwick Express), Southeastern and London Midland franchises through its 65% owned subsidiary Govia. "Performance in our Southern franchise was better than anticipated," it said.In bus-deregulated, operations outside London performed well and it is confident in full-year expectations for this division. Growth in fare paying customers was partially offset by lower concessionary passenger numbers, it explained.In regulated bus, it said London operations continue to deliver robust results with strong underlying revenue and mileage growth."The group remains in a good financial position with strong cash generation and a solid balance sheet, underpinning the dividend policy and allowing flexibility to pursue value-adding opportunities. We continue to focus on our key strengths," it added. CJ