Go-Ahead posts pre-close financial update

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Go-Ahead Group plc has announced its pre-close financial update for the six months ending December 27, 2015, ahead of its half year results announcement on February 18, 2016.

Regional bus operations at Go-Ahead saw 1% revenue growth and a 1% drop in passenger journeys from the pre-close financial update. In London, both mileage operated and revenue growth in was in-line with the group’s expectations, though quality incentive contract revenue continues to be adversely impacted by congestion resulting from roadworks. Revenue was up 2.5% with mileage up 2.0%.

David Brown, Group Chief Executive of Go-Ahead, said: “Our full year expectations remain unchanged.

“During this period the Group welcomed news of contracts wins in both bus and rail services. We were pleased to be awarded by the Department for Transport (DfT) a direct award contract for London Midland from March 2016 to October 2017.

“Overseas, Go-Ahead was successful in bidding for a 25 route bus contract in Singapore and two German rail contracts. These opportunities establish Go-Ahead’s presence in these strategic markets and add value to our existing portfolio.

“In the period we also welcomed the report and findings of the independent Quality Contracts Scheme Board on Nexus’s proposed Quality Contract Scheme for Tyne and Wear, which concluded that the proposed Scheme failed to meet the necessary statutory public interest tests. Our firm belief is that working in partnership can bring about better outcomes for both bus passengers and taxpayers.

“Following the government Spending Review, we are encouraged that the DfT has confirmed the Bus Service Operators Grant will be protected until at least 2020/2021.”