11th Jul 2022 08:42
(Alliance News) - Go-Ahead Group PLC on Monday said it expects a "busy summer ahead" as the transport operator's customer numbers surge as Covid-19's grip on the market weakens.
Both its Regional Bus and London & International Bus units impressed in the year ended July 2, the company said.
Operating profit before exceptional items at the Regional Bus arm, which includes its UK bus services outside of London, to be ahead of two years prior.
"In our Regional Bus division, we have continued to see a steady recovery in passenger demand, with commercial volumes across the business now over 85% of pre-pandemic levels. In some areas, we have seen particularly encouraging volumes in recent weeks, with pre-pandemic volumes being recorded on some days. These trends give us confidence in the continuation of passenger recovery in the coming months," Go-Ahead said.
In the London & International unit, operating profit before exceptional items will be at least in line with pre-pandemic underlying profit levels of GBP51.2 million.
The international arm includes Go-Ahead units in Singapore and Ireland.
Elsewhere, Go-Ahead expects UK rail profit before exceptional items within a GBP25 million to GBP30 million range.
In International Rail, it forecasts an operating loss before exceptional items within a GBP15 million to GBP20 million range.
Chief Executive Christian Schreyer added: "Passenger numbers on public transport have continued to recover from the pandemic and in certain parts of the UK, such as Manchester, our buses are as busy as they were before Covid-19. We are encouraged to see so many people using buses and trains and we expect a busy summer ahead, particularly in tourist areas."
In addition, the company will pay a 50 pence special dividend should its takeover by a consortium become effective, Go-Ahead said.
In June, it backed a GBP647.7 million takeover from a consortium consisting of Kinetic Holding Co Pty Ltd and Globalvia Inversiones SAU.
Shares in the company were 0.6% higher at 1,579.80 pence each in London on Monday morning, giving it a market capitalisation of GBP682.1 million.
Kinetic is a bus operator in Australia and New Zealand, while Globalvia is a Madrid-based transport infrastructure firm.
Court and general meetings in relation to the deal will occur on August 8. The long stop date for the acquisition is January 14.
By Eric Cunha; [email protected]
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