Excessive delays on London buses mar Go-Ahead's first half

It was full steam ahead for most of Go-Ahead on Thursday, with the company reporting good numbers across most of its operations in six months to 26 December - though excess delays on its London bus network marred the results.

The FTSE 250 transport operator saw revenue rise 6.8% over the first half of last year, to £1.67bn from £1.56bn.

Adjusted operating profit rose 19.7% to £80.7m, with profit before tax rising 26.1% to £71.9m. Earnings per share were 116.8p on an adjusted basis, up 24.9% on last year's 93.5p.

"Our bus division performed well. Both regional revenue growth and passenger growth were stronger in the second quarter as we have continued to enhance our customer proposition. We are proud of our high levels of regional bus customer satisfaction, which remain the best in the sector at 90%," said chief executive David Brown.

Adjuted operating profit for the bus division was up 1.5% to £47.8m, with adjusted operating profit from regional buses up 7% to £26.1m.

In London - where Go-Ahead remained the largest operator contracted to Transport for London - adjusted operating profit was down 4.4% to £21.7m. The firm blamed the fall on roadworks and congestion.

"Growth in London bus mileage increased in the first half due to high contract retention rates and contract gains. We have also benefited from contract variations and rail replacement work. This helped offset the effect of reduced Quality Incentive Contract (QIC) payments, which have been impacted by roadworks and excessive congestion in the capital," Brown explained.

He said the company was working closely with TfL on finding ways to improve service reliability, and mitigate delays.

In its rail division, Go-Ahead reported adjusted operating profit of £32.9m. It returned a £126.6m contribution to the government, up £18.4m on the prior year.

The company said it was working with Network Rail to minimise disruption to passengers during the ongoing £6.5bn Thameslink Programme infrastructure project, which was affecting many of the company's services in the capital.

"The Government is investing in the Thameslink major infrastructure programme, which will transform north-south travel through London and help meet the huge rise in demand from passengers. We share the frustration of customers who have recently experienced disruption to their journeys due to these improvement works and, together with Network Rail, we are committed to minimising the impact on passengers," Brown said.

The company also had a number of contract wins during the period, including a direct award of the London Midland rail franchise from April 2016 to October 2017. Go-Ahead also successfully bid for a 25 route bus contract in Singapore, and won two German rail routes in the newly deregulated country.

"Looking ahead to the full year, our expectations remain unchanged," Brown concluded.

Go-Ahead's board proposed a dividend of 28.33p per share, up 6.5% on last year's 26.6p.