3rd Sep 2015 06:38
LONDON (Alliance News) - Transport operator Go-Ahead Group PLC on Thursday said its annual pretax profit was pulled lower by exceptional costs, but said its underlying performance was strong and its revenue surged higher thanks to stronger-than-expected trading in its rail unit.
The FTSE 250-listed company said its pretax profit for the year to June 27 was GBP78.7 million, down from GBP91.2 million a year earlier, as the group booked GBP8.8 million in exceptional costs, having booked a GBP12.1 million gain a year earlier. Stripping out exceptional costs, Go-Ahead's pretax profit was up to GBP96.6 million from GBP84.9 million.
Revenue was sharply higher for the group in the year, rising 19% to GBP3.22 billion from GBP2.70 billion a year earlier, following a stronger-than-anticipated performance in its rail business and robust trading in its regional bus operations. It did say, however, that it expects to hit its GBP100 million operating profit target for the bus operations in the 2016-17 financial year, a year later than it had anticipated.
Go-Ahead said it has submitted bids for the Northern and Transpennine Express rail services and has been shortlisted to take on the London Overground contract. It added it is continuing to explore potential opportunities outside of the UK.
The group said it will pay a final dividend of 63.4 pence per share, up from 59.0p a year before, meaning its full-year dividend will be up 6.5% to 90.0p per share.
David Brown, Go-Ahead's chief executive, said he was pleased with the group's financial performance in the year, with operating profit coming in slightly ahead of its expectations. "The group remains in 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," he said.
By Sam Unsted; [email protected]; @SamUAtAlliance
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