Go-Ahead Group has announced its third quarter trading statement for the period from January 1, 2017 to April 19, 2017.
The group’s regional UK bus operations saw revenue increase by 1.5%, with no notable change in patronage. London services saw revenue grow by 2.5% on a 1% smaller mileage total. Rail operations had varying performance due to industrial action on GTR and Southeastern services.
The company said its full year expectations for both bus and rail divisions remained unchanged, and it remains in a strong financial position, with good cash generation and a robust balance sheet.
In its regional bus operations, Go-Ahead said passenger volumes are outperforming the wider industry, with growth in some regions offsetting declining volumes in other operating areas.
In London, the company secured 95% of its expected revenue for 2017/18 through the normal bidding cycle. It said that while congestion continued to impact its ability to operate reliable services on behalf of Transport for London (TfL), revenue generated through Quality Incentive Contracts has stabilised.
The company added that its bus operation in Singapore is performing well, delivering high levels of punctuality on behalf of the Land Transport Authority.
Go-Ahead has begun the process of refinancing its £200m sterling bond ahead of its maturity in September 2017. As a result of lower interest rates, it anticipates the finance costs to reduce in the financial year to June 2018.