Go-Ahead tops forecasts, ups guidance

21st Feb 2019 07:59

(Sharecast News) - Public transport providers Go-Ahead saw operating profits exceed expectations in the first half of its trading year, leading the group to up its full-year guidance.Go-Ahead recorded a 5% increase in revenues to £1.92bn, principally due to new contract wins in its bus and rail units.Bus operating profits came in slightly ahead of its previous trading year at £46.9m, while rail operating profits sunk 56.33% to £17.6m as a result of the end of its London Midland franchise in December 2017.Operating profits fell 25.8% to £64.5m on the back of the struggling rail business and a "challenging market environment" but was still ahead of expectations.Looking forward, chief executive David Brown said: "For the group overall, our full year expectations have increased, principally due to rail."We expect free cash flow generation to be strong, resulting in a reduction in net debt, excluding restricted rail cash, at year end and supporting the payment of dividends that are in line with our policy."Go-Ahead restated its 30.17p interim dividend.As of 0840 GMT, Go-Ahead shares were up 2.72% to 1,967p.