23rd Apr 2009 07:00
23 April 2009
The Go-Ahead Group plc ("Go-Ahead")
Interim Management Statement
The Go-Ahead Group plc today announces its Interim Management Statement for the period from 28 December 2008 to
22 April 2009.
Overall, the group's third quarter trading was in line with our expectations and has reinforced our confidence in our expectations for the full year to June 2009.
Bus:
We have continued to increase revenue and passenger numbers in our bus operations. On a like-for-like basis and compared to the same quarter last year, our deregulated bus operations increased revenue and passenger numbers at similar rates to the 6.6% and 3.6% increases respectively achieved in the first half of the year. Concessionary passengers accounted for three quarters of the growth in numbers, the rest coming from additional fare paying passengers. In our regulated London operations, revenue increased by just under five percent. As expected, operated mileage decreased slightly in the quarter due to contract expiry in advance of new contract wins starting later this year. We continue to make good progress with cost control, energy savings and recovery of increased fuel costs. Our fuel requirements are fully hedged for the current financial year at an average of 43p per litre, fully hedged for next financial year at an average of 47p per litre and 80% hedged for the following year at an average of 42p per litre.
Rail:
Demand continued to grow in our rail division, which operates the Southern, Southeastern and London Midland franchises through our 65% owned subsidiary Govia. Like-for-like growth in passenger revenue ranged from over five percent in Southeastern to close to ten percent in London Midland. Passenger numbers increased in all three franchises, ranging from a small increase in Southeastern to close to five percent in London Midland. These increases were broadly in line with expectations, with some adverse impact from poor weather in February broadly offset by the timing of the Easter break (in the third quarter of last financial year but the final quarter this year). Cost saving initiatives are progressing as planned.
The result of bids for the next Southern rail franchise is expected in June and the new franchise starts in September 2009. In Southeastern, preparations for the December 2009 introduction of a new timetable and the UK's first domestic high speed services are on schedule.
Aviation services:
As expected, results for the third quarter were similar to the first two quarters of the year, despite significant reductions in demand. On a like-for-like basis, aircraft turnarounds reduced by around 15% and cargo tonnage decreased by around 25% for the quarter compared to the same quarter last year. We continue to make good progress with our ongoing restructuring plans, including the withdrawal from ground handling at Leeds airport, and we completed renewal of the Virgin ground handling and cargo contracts for a further five years.
Our Meteor parking operations performed as expected in the quarter.
Outlook:
Overall, the group's third quarter trading was in line with our expectations and has reinforced our confidence in our expectations for the full year to June 2009.
Our cashflow remains strong, our balance sheet is robust and we have financing secure to 2012. We will continue to emphasise service quality, cost savings and financial discipline.
Ends
For further information, please contact:
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The Go-Ahead Group |
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Keith Ludeman, Group Chief Executive |
020 7821 3920 |
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Nick Swift, Group Finance Director |
020 7821 3922 |
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Weber Shandwick Financial |
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Terry Garrett/Stephanie Badjonat/Clare Perks |
020 7067 0700 |
Notes to Editors
Go-Ahead is one of the UK's leading providers of passenger transport services operating in the bus, rail and aviation services sectors. Employing over 27,500 people across the country, around 920 million passenger journeys are undertaken on our services each year. In addition to the travelling public, customers include the Department for Transport (DfT), Transport for London (TfL), local authorities, British Airports Authority (BAA) and major airlines.
Bus
Go-Ahead is one of the UK's largest bus operators. With a fleet of over 3,400 buses, we carry, on average, around 1.6 million passengers every day. Our operations are focused on high density commuter markets. We have a strong presence in London, with around 20% market share, where we provide regulated services for TfL. We operate deregulated services in the north east; Oxford; the south east and southern England.
Rail
The rail operation, Govia, is 65% owned by Go-Ahead and 35% by Keolis. It is the busiest rail operation in the UK, responsible for nearly 30% of all UK passenger rail journeys through its three rail companies: Southern (which includes the Gatwick Express), Southeastern and London Midland. The Southeastern franchise will include the operation of new high speed trains on the domestic Channel Tunnel Rail Link into St Pancras International from 2009, significantly reducing current journey times.
For further information about our rail franchises please visit our factsheets:
http://www.go-ahead.com/goahead/aboutus/our_markets/uk_rail_market/
Aviation Services
The Group's aviation services division is one of the UK's largest independent providers of cargo services (primarily Plane Handling), ground handling (primarily Aviance UK) and car parking (Meteor). The division operates from 16 airports and services major airline operators such as British Airways (BA), Virgin and bmi. Market leading services within Meteor include 'Meet & Greet' and 'Pink Elephant' services.
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