24th Sep 2020 09:52
(Alliance News) - Go-Ahead Group PLC on Thursday posted a swing to loss for financial 2020 as it warned on uncertainty despite an improvement in activity.
Shares in the FTSE 250-listed transport service provider were trading 5.9% higher at 672.50 pence each on Thursday morning in London.
For its financial year ended June 27, Go-Ahead posted a pretax loss of GBP200,000, swinging from a GBP97.0 million profit the year prior. This was despite a 6.1% year-on-year rise in revenue to GBP3.89 billion from GBP3.67 billion.
Regional bus business were significantly hurt by the Covid-19 pandemic as the number of passengers travelling on its services reduced significantly in March due to lockdown restrictions, resulting in an operating profit of GBP20.5 million, down from GBP44.5 million. Rail operating profit was GBP8.9 million, down from GBP25.4 million due to lower contractual margins in Southeastern and significant operational and commercial challenges in its German rail business.
No final dividend was declared, following the suspension of the 30.17p interim dividend. However, the company assured it will continue to assess the appropriate time for the reinstatement of shareholder returns. For comparison, a final dividend of 71.91p was paid for financial 2019, taking the year's total to 102.08p.
Turning to current trading, Go-Ahead noted an improvement from the period of the UK national lockdown, highlighting that services are now running at around 90% of pre-Covid-19 levels in its regional bus businesses and around 90% of its UK rail services are now in operation.
However, it held back on reinstating financial guidance for its regional bus business due to uncertainty regarding the coming months, although assuring that the contracted nature of the remainder of its business provides greater visibility of future financial performance.
"For the 2021 financial year, we expect our London & International bus division to generate operating profit similar to that delivered in 2020. Our rail division is expected to deliver a break-even operating performance," said Chief Executive David Brown.
Group operating profit for financial 2020 was GBP20.8 million, drown from GBP104.3 million the year prior. Pre-exceptional items, the figure stood at GBP77.9 million, which while lower that GBP121.1 million the year prior, was slightly ahead of its May guidance of between GBP63 million and GBP75 million.
Cash held as at year-end was GBP569.8 million, down from GBP630.8 million the year prior.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
GOG.L