13th Dec 2005 07:01
Go-Ahead Group PLC13 December 2005 For release at 07.00amTuesday 13 December 2005 The Go-Ahead Group plc ("Go-Ahead" or the "Group") Pre-close Trading Update Go-Ahead announces its pre-close trading update for the six months ending 31December 2005. As indicated at the time of the AGM statement, cost pressures continue to havean impact on the Group's bus division, particularly outside London whereoperating margins remain under pressure from high fuel costs and wage inflation.Management actions to address these cost pressures continue but will take sometime to deliver results. In London, the bus business has continued to performwell, with good operating performance and cost control delivering solid returns. Within the rail division, the operating performance at Southern has continued tobe excellent with good passenger volume growth. We are also pleased to reportthat the recovery in passenger numbers at Thameslink following the terroristattacks in the summer has continued through the period. We were delighted thatGovia has been selected by the Department for Transport as the new franchiseefor the new eight year Integrated Kent Franchise, one of the largest commuterrail franchises in the South East, commencing in April 2006. We are confidentthat real benefits will be delivered for both passengers and shareholders fromthis franchise. Following this success, the Group has decided to withdraw fromthe current pre-qualification process for the new South West franchise. However,the Group remains committed to pursuing further rail franchise opportunities inthe future. Trading in aviance, our ground handling business, is unchanged, with the focusremaining on the delivery of cost reductions. Plane Handling, our principalcargo business where recent volume growth is encouraging, and Meteor, our carparking business, continue to perform well. As previously indicated, the issues highlighted above have had an impact on theGroup's performance in the first half but the Board remains confident that theperformance will improve during the second half of the year. For further information, please contact: The Go-Ahead Group plcChris Moyes, Chief Executive 0191 232 3123Ian Butcher, Group Finance Director Weber Shandwick Square Mile (WSSM) 020 7067 0700Richard Hews/Rachel Taylor/Stephanie Badjonat Note to Editors: Go-Ahead is a key operator of commuter services in London and the South East.Through Govia, it is the franchise holder for Thameslink, Southern, as well asthe future Integrated Kent franchise due to commence on 1 April 2006. Busservices include London Central and General, companies in North East England,West Midlands, Oxford, Brighton, Poole, Bournemouth, Southampton, Isle of Wightand routes in the Gatwick Airport and Crawley conurbation. The aviation and carparking businesses have nationwide coverage. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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