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

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.