Partly Cloudy

Partly Cloudy

max temp: 13°C

min temp: 4°C

ESTD 1874 Search

East Anglia: Increased first half profits for Hedingham, Chambers and Anglia Bus owner Go-Ahead

12:23 20 February 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 it was “making good progress” towards achieving a three-year plan to boost annual operating profits at its UK bus business to £100million.

shares

The update came as Go-Ahead reported increased first half profits of £51.1million for the six months to December 28, up from £42.1m for the corresponding period a year earlier.

Operating profit from its bus services grew by 14.7% overall to £40.6m on revenue 4.1% higher at £397.0m, including growth in both commercial and consessionary travel.

The group’s deregulated bus services, which in East Anglia include the Hedingham, Chambers and Anglia Bus operations, saw operating profits rise 26.3% to £20.2, with revenues 2.9% up at £174.3m.

Regulated bus services also performed well, slightly ahead of expectations, with operating profits rising by 5.2% to £20.4m on revenues 5.1% higher at £222.7m.

First-half operating profits within the group’s rail division, which includes the Southeastern, Southern and London Midland franchises, also improved, from £6.7m to £10.5m, on revenues 6.3% higher at £973.0m.

However, Go-Ahead warned that the division was “not expected to generate material profits” in the second half of the year as a result of increased franchise premium payments.

Group chief executive David Brown said: “In October 2012 we set out a three year plan of growth and business improvement with the aim of raising the performance of our UK bus business to £100m in operating profit.

“We are making good progress, and 16 months into that timetable, our planning assumptions remain valid and we are on course for our target.

“Meanwhile we maintain our long-term commitment to rail and were pleased to have submitted our bids for the Thameslink and Crossrail franchise competitions during the period.

“The sustained efforts of our 23,500 people, backed by substantial targeted investments in technology, fleet and new facilities, are strengthening our business by improving services for all our customers.

“Our use of smart and mobile ticketing data helps deepen our understanding of our customers’ needs and allows us to continue to develop and improve our capabilities, to make our bus and rail services more attractive and more convenient.

“With record passenger numbers, effective cash management and a strong balance sheet, Go-Ahead is in good shape with excellent growth prospects.”

He added: “Overall our full year expectations are unchanged. In the second half of the year, we anticipate a similar bus performance as in the first.

“As previously indicated, the rail division is not expected to generate material profits in the second half of the year as our premium profile will become more challenging and Southeastern will commence a seven-month extension period, which is expected to be unprofitable.

“We remain confident in our ability to deliver our £100m bus profit target by 2015/16 and continue to make progress in securing our rail portfolio.”

shares

0 comments

Sir John French: a colourful character and respected soldier

We’ve heard about the Suffolk men who fought at the battle of Neuve Chapelle.

Ipswich Crown Court

A 19-year old man who met up with a 13-year-old girl and exchanged text messages with her despite being given a police caution for kissing her several months earlier has been sentenced to 21 months youth detention.

St Edmundsbury Cathedral overlooking colourful displays in the Abbey Gardens

Suffolk’s most important religious building has been awarded a £300,000 Government grant to pay for urgent roof repairs.

Josephine Murphy

An 86-year-old woman who had gone missing from Clacton has been found safe and well

Aftermath of a barn fire in Holton.

A television antiques expert has appealed for help rebuilding his eco-friendly arts centre in Suffolk after a major blaze destroyed the historic sawmill that was to be its showroom and workshops.

Darsham Nurseries head chef Lola DeMille and chef Tom Eagle in the cafe where they are donating money from one of the dishes to the World Land Trust.

An international conservation charity based in Suffolk is one of three organisations to benefit from a new campaign raising awareness about the impact of meat production on health, welfare and the environment.

Suffolk County Council's base at Endeavour House

Up to 23 jobs could go in a major shake-up of Suffolk County Council’s education services.

Latitude Festival, at the Henham Estate near Southwold

Suffolk poet Luke Wright has seen the Latitude festival grow from a modest boutique gathering in 2006 to one of Britain’s biggest music and arts events.

The vandals tore through Bury St Edmunds

A drunken “night of madness” saw vandals rack up over £5,000 of damage to cars, pubs and property as they roamed the streets of Bury St Edmunds.

Fire crews

Firefighters tackled a lorry fire in Ipswich last night, after police reported the vehicle in Hatfield Road.

Most read

Most commented

Topic pages