Go-Ahead sees profits surge
Friday, 05 Sep 2008 09:25
Crunch forces Brits onto trains
Train and bus operator Go-Ahead has seen profits surge "significantly" during the last financial year, reporting results "well ahead of expectations".
The company – which carries around 30 per cent of the nation's railway traffic – confirmed pre-tax profits before exceptionals increased 19.1 per cent to £131.1 million for the year to June 28th.
This was based on revenue of £2.2 billion, again up by 20.4 per cent.
The credit crunch has seen cash-strapped commuters moving away from their cars and toward cheaper public transport, finds Go-Ahead.
Sir Patrick Brown, chairman of the group, commented: "Demand for our bus and rail services continues to rise as people change the way they travel, and our balance sheet and cashflows remain strong."
The bus market was also strong for the company.
Go-Ahead has a fleet of over 3,400 buses, carrying around 1.6 million passengers every day in high density commuter markets.
The company maintains strong presence in London, with around 20 per cent market share, providing regulated services for Transport for London (TfL).
The company's rail operation, Govia, is 65 per cent owned by Go-Ahead and 35 per cent by Keolis.
It is the busiest rail operation in the UK, responsible for nearly a third of all UK passenger rail journeys through its three rail companies: Southern (which includes the Gatwick Express); Southeastern; and London Midland.
Maintaining the Southern franchise is cited as a priority for the company, allowing it to bring passengers into London Bridge station.
Following the results Go-Ahead raised its full-year dividend by 15.7 per cent to 81p a share.