Go-Ahead results show strong growth

Go-Ahead Group results for the last six months to 28 December 2013 record strong growth in both bus and rail sectors.

The group showed a 21.4% increase in operating profit to £51.1m (H1, 2013, £42.1m), and a 30.8% rise in profit before tax to £40.3m (H1, 2013, £30.8m).

Group operating profit margins improved from 3.2% to 3.7%. Adjusted net debt has increased from £277.1m to £295.6m, though this comes within agreed target limits.


Operating profits in the deregulated sector have risen sharply, by 26.3% to £20.2m (H1, 2013, £16.0m), and by a more modest 5.2% to £20.4m (H1, 2013 £19.4m) on the regulated side.

Revenues in the deregulated sector increased 2.9%, from £169.4m to £174.3m, and by 5.1% from £211.9m to £222.7m in the regulated sector.

Operating profit margins improved from 9.4% to 11.6% in the deregulated sector, but remained at 9.2% for the regulated side.

After adjustments for the Olympics factor, the deregulated passenger journeys increased 1.4%, and regulated bus mileage was up 2.8%.


The rail division operates the Southern, Southeastern and London Midland franchises through its 65% holding in the Govia subsidiary.

The £10.5m operating profit is up by a massive 56.7% (H1, 2013, £6.7%), but revenues by only 6.3% to £973.0m (H1, 2013, £915.3m).

Southern premiums rose sharply to £88.8m (H1, 2013, £69.4m), while subsidises and other forms of support have declined for the two other TOCS: Southeastern is down to £37.3m (H1, 2013, £42.2m); and London Midland fell to £29.1m (H1, 2013, £29.6m).

Overall, Go-Ahead made a net DfT contribution of £22.4m, as against receiving £2.4m in H1, 2013.

All three franchise operators experienced increases in passenger revenue growth: London Midland (10.1%); Southern (8.2%); and Southeastern (5.3%). Also, in passenger volume growth:  London Midland (5.4%); Southern (4.3%); and Southeastern (3.9%).

641/Feb 14

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