Overcast

Overcast

max temp: 11°C

min temp: 8°C

ESTD 1874 Search

Transport: Bus and train operator Go-Ahead lifts full-year forecast

12:00 19 June 2014

David Brown, chief executive at Go-Ahead

David Brown, chief executive at Go-Ahead

© Guy Bell

Bus and train operator Go-Ahead said today that its rail business is heading for a better second half than previously expected while prospects for its bus operations remain unchanged.

shares

In a pre-close statement ahead of its results for the year to June 28, the group said that full-year revenues from its deregulated bus services, which include Anglian Bus, Chambers, Hedingham and Konectbus in Essex, Suffolk and Norfolk, were expected to be up 3.5% in total and 4% ahead stripping out the effect of the Olympics in 2012 unchanged from its last update covering the period up to March 29.

“Solid underlying growth in revenue and passenger journeys has continued into the fourth quarter, with growth in both commercial and concessionary travel,” Go-Ahead said.

Annual revenue growth for its regulated bus services in London is now expected to be 5% up on the previous year in total and 6.5% higher excluding the effect of the Olympics.

This represents a slow-down from figures of 6% and 8% respectively at the end of the third quarter, which Go-Ahead said reflected the timing of contract renewals.

Full-year revenue growth at the group’s Southern, Southeastern and London Midland rail franchises is now expectd to come in at 6% (6.5% excluding the Olympics), 5% (6.5%) and 7% (7.5%) respectively.

This represents a strong final quarter for Southeastern, where growth stood at 4.5% (or 6% excluding the Olympics) after the third quarter, but a slowdown for Southern (which includes Gatwick Express) and London Midland, which recorded nine-month figures of 7% (7.5%) and 8% (9%) respectively.

However, Go-Ahead said: “As a result of lower energy costs and better than expected operational perfomrance in the fourth quarter, we now expect second half rail operating profit to be ahead of previous expectations, with second half profits slightly lower than first half.”

And chief executive David Brown added: “Overall perfomrmance in our bus and rail businesses is good. Our full year expectations for our bus operations remain unchanged and we now expect the rail division to deliver operating profit ahead of our previous expectations.”

Looking ahead to next year, Go-Ahead said it expected its bus division to continue to make “good progress” towards its target of £100million in operating profit by 2015-16 while its existing rail businesses were expected to deliver a similar performance.

Last month, Go-Ahead beat rival FirstGroup to win the new Thameslink, Southern and Great Northern (TSGN) franchise which will replace the existing Thameslink and Great Northern franchise, currently operated by FirstGroup as First Capital Connect, from September this year.

It will also include Go-Ahead’s South Central franchise (Southern and Gatwick Express), when it expires in July 2015, with a small number of services and stations also transferring from the South Eastern franchise (Southeastern) from December this year.

The seven-year deal will cover services currently carrying 273million passengers a year and linking locations including Cambridge, King’s Lynn, Peterborough, Bedford and Luton to destinations such as Brighton and Gatwick Airport, as well as providing links to the high speed Channel Tunnel line at St Pancras and to the new Crossrail service at Farringdon.

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Sainsbury's chief executive Mike Coupe.
Photo: Sainsbury's/PA Wire

The City will this week look for details of how Sainsbury’s plans to overhaul Argos when the supermarket posts its annual results next week, while trading at rival Morrisons and banking giant HSBC will also be in the spotlight.

Avanti supports CLIC Sargent charity

Networking group getting Muddy and wiggy for young cancer patients

Nick and Kim Hoare from Ivy Grange Farm near Halesworth who run a glamping site with five yurts.
Photo: Nick Butcher

A glamping firm hoping to banish memories of sodden sleeping bags and leaking tents is catching the eye of campers after an upmarket break.

Royal Bank of Scotland has reported a sharp increase in first quarter losses.

Royal Bank of Scotland has reported a first-quarter pre-tax loss of £968million, more than double last year’s figure of £446m.

Tom Boother is running from Land's End to John O'Groats in aid of EACH and Great Ormond Street. Marquis Suffolk is lending Tom a motorhome for him to sleep in during the challenge.

Tom’s charity challenge - running 816 miles from Land’s End to John O’Groats

Most read

Great Days Out

cover

Click here to view
the Great Days Out
supplement

View

Most commented

HOT JOBS

Show Job Lists

Streetlife

Newsletter Sign Up

Great British Life

Great British Life
MyDate24 MyPhotos24