Go-Ahead sees FY results 'slightly ahead' of previous expectations

In a week that saw timetable changes in its main rail business wreak havoc on commuters, FTSE 250 transport operator Go-Ahead said it was confident of delivering full-year results "slightly ahead" of its previous expectations, thanks in part to efficiency improvements in the rail division.

In a trading statement for the period from 31 December 2017 to 23 May 2018, the company said the London bus division saw around 3% revenue growth in the period, while the Southeastern rail business saw passenger revenue growth of around 3.5%.

Go-Ahead - which operates the Southeastern and GTR rail franchises - said trading in the rail business was boosted by efficiency improvements and helped by the resumption of full Southeastern services through London Bridge station.

Chief executive David Brown said: "In a challenging market environment with reduced retail footfall and pressures on local authority budgets, our businesses have performed well overall.

"In bus, our London operations have seen an improvement in service performance resulting in higher Quality Incentive Contract income. Revenue and passenger trends remain mixed across our regional bus businesses.

"In partnership with the industry, this week we began the introduction of the largest timetable change in decades. The modernisation of the network will lead to new routes, greater connectivity and increased peak frequency through central London with the new technology of automatic train operation."

At 0930 BST, the shares were up 0.2% to 1,854p.