Go-Ahead says trading in line, reaffirms full year expectations

Transport operator Go-Ahead Group said trading in the six months to 27 December has been in line and the company’s expectations for the full year remain unchanged.

During the period, the group was awarded contracts in both the bus and rail divisions.

It was awarded a contract by the Department for Transport for London Midland from March 2016 to October 2017.

Overseas, Go-Ahead was successful in bidding for a 25-route bus contract in Singapore and two German rail contracts.

The company said these opportunities “establish Go-Ahead's presence in these strategic markets and add value to our existing portfolio”.

Go-Ahead expects revenue at its regional bus division to be around 1% higher in the half, and revenue at the London bus unit to be around 2.5% higher.

In Rail, the group expects revenue growth across its Southeastern, London Midland and GTR franchises.

Passenger revenue growth at Southeastern is expected to be around 6%, while growth at London Midland is seen at 12% and GTR is expected to grow 6%.

“Overall, current trading is satisfactory and we remain on course to meet our full year expectations for both the bus and rail divisions.

“The group remains in a good financial position with strong cash generation and a robust balance sheet, supporting our progressive dividend policy and allowing flexibility to pursue value-adding opportunities,” the company said.

At 0807 GMT, Go-Ahead shares were up 3.6% to 2,655p.