1st May 2014 08:41
LONDON (Alliance News) - Go-Ahead Group PLC said Thursday it is pleased with the overall performance of its bus and rail business and retains its expectations for the full-year as it remains focused on cost efficiencies and improving revenue growth.
In an interim management statement for the period from December 29, 2013 to April 30, 2014, the firm said it continued to make good progress in its bus division and is on course to achieve its operating profit target of GBP100 million by 2015/16.
The firm said overall underlying trading in its rail division is also in line with expectations, noting that it is currently awaiting the outcome of the DfT's Thameslink franchise competition.
"Our focus remains on achieving cost efficiencies in all areas of the business and driving revenue growth through our high quality operations. During the period we welcomed the results of the independent statutory watchdog Passenger Focus' national customer satisfaction survey in which Go North East achieved 90% satisfaction," said David Brown, Group Chief Executive.
Reporting figures covering the year-to-date from June 30, 2013 to March 29, 2014, Go-Ahead said regulated bus revenue rose 8%, excluding Olympic comparisons, buoyed by continued higher levels of rail replacement work. Mileage was up 2.5% excluding Olympic contract comparatives.
Deregulated bus revenue was up 4% year-to-date, excluding Olympic comparisons, driven by good growth in passenger numbers and increased mileage. Passenger numbers rose 2% on an underlying basis, excluding Olympic metric comparisons.
Go-Ahead said underlying revenue growth in the overall rail division remains solid and in line with expectations, though notes that passenger journey data across all companies continues to be impacted by changes in Travelcard allocations and inflating growth rates.
The company operates the Southern (including Gatwick Express), Southeastern and London Midland franchises through its 65% owned subsidiary Govia.
Looking ahead the firm said it remains confident that it will deliver full-year figures in line with its expectations and remains open to value-adding opportunities. "We continue to focus on our key strengths of providing high quality, locally-focused and innovative transport services," said Go-Ahead.
Shares in Go-Ahead were trading 1.52% higher at 2,003 pence per share Thursday morning.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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