Go-Ahead Group has announced its pre-close trading update for the six months ending December 31, 2016, ahead of its half year results on February 28, 2017.
The group said its full year expectations for the rail division are slightly below its previous estimates due to higher than expected costs associated with the GTR franchise and increased bidding activity in targeted markets overseas. However, the bus division remains in line with its previous expectations.
In its regional bus operations, Go-Ahead said it expects passenger revenue and journeys to be up slightly year on year in the first half of the year, reporting revenue growth of 1% and passenger journey growth of 0.5%. It said weakness in the North East continues to impact its operations in the region, supressing overall growth rates, which would be 2% revenue and 1% passenger growth increases if that region is excluded.
In London, the group saw a stronger than expected performance in the first quarter of the year, which have since reduced. Overall revenue was up 2.5%, with a 0.5% increase in mileage.
The operator said its new Singapore bus services are operating well.
