Go-Ahead Group has released its latest trading update, covering the period from 30 June to 27 November 2019.
The report shows that, although regional bus performance is slightly lower than the company expected, the division is still growing; London and international has continued to perform in-line with expectations, meanwhile.
Regional bus experienced a 2.5% like-for-like growth in revenue and a 0.5% increase in passenger journeys. Although these figures didn’t meet the group’s expectations, it is optimistic that its Manchester business ‘will be value adding, both financially and strategically, in the future.’
London and international bus saw an 8% rise in revenue, while mileage increased by 4% and PVR by 4.5%. The company’s expectations for the full year in this division remain unchanged in light of these figures. “Strong revenue growth reflects the introduction of new contracts in London. This business continues to deliver a strong performance with high punctuality levels,” the report reads.
The company reports high levels of punctuality and customer satisfaction across both bus and rail, with record levels of punctuality in Southeastern and GTR rail.
Go-Ahead Group Chief Executive, David Brown, said: “In regional bus, we continue to see growth in passenger journeys and our yield enhancement plans are beginning to deliver improvements. The integration of our new bus company in Manchester, combined with cost pressures in some areas of the business, has slightly lowered our expectations for this division’s financial performance for the full year.
“In our London and international bus division, all of our businesses are performing well and in line with expectations.
“I firmly believe in the fundamental strength of our bus business. Buses have a significant role to play in transforming the way people travel and in slowing the rate of climate change, improving air quality and easing congestion in our towns and cities.
“We continue to invest in the customer experience and were pleased to introduce the UK’s first tap on, tap off capped payment scheme outside London, on our buses in Brighton. Since launching in September, the number of journeys paid for using this method has grown to 25% of all on-bus transactions.”