Southern operator Go-Ahead finishes year ahead

Passenger transport operator Go-Ahead Group posted its preliminary full-year results for the year to 2 July on Friday, with its overall results slightly ahead of management expectations.

The FTSE 250 firm achieves its £100m bus target, with adjusted operating profit there up 8% to £100.4m.

Regional bus operations saw a 9.4% rise in adjusted operating profit to £53.3m, while London bus adjusted operating profit rose 6.3% to £47.1m.

Rail adjusted operating profit was £57m, with a margin of 2.3% and a contribution to the Department for Transport of £222.4m.

Go-Ahead’s board proposed a 6.5% increase in the full-year dividend to 95.85p.

"It has been a year of financial progress in all three divisions,” said group chief executive David Brown.

“Our market positions have been strengthened, with organic growth supported by contract wins and extensions.

“As part of a targeted programme, we are pleased to have won new business in Singapore and Germany,” Brown added.

He said the company was continuing to explore similar opportunities in those and other selected markets.

"The £6.5bn Thameslink Programme is a once in a generation opportunity to respond to the 40 percent passenger growth on Southern over the past five years and address the long term underinvestment in infrastructure.

“Customers will see gradual improvements over the next two years but the capacity of the network remains restricted until the end of 2018, when the ultimate benefits of this huge investment programme will be delivered.”

Brown also touched on the major disruption that has been plaguing the Southern Railway franchise, saying part of the role of its GTR operation is to introduce three new train fleets and modernise working practices.

He said during the period of change, Southern services have been disrupted by restricted network capacity, strike action and increased levels of absence.

“We apologise to the people whose lives have been affected during this time.

“We continue to work closely with the DfT, Network Rail and other suppliers and partners to operate the best service possible while delivering the long term improvements.”