Good results for Go-Ahead buses but rail profits slump

Go-Ahead results for the first six months of the FY 2014/15 ended 27 December 2014 record improvements in bus performance but a downturn in the rail sector.

Group revenue was 13.8% up to £1,559m (H1 2013/14: £1,370m); and operating profit increased 6.1% to £55.3m (H1 2013/14: £52.1m). Profit before tax improved 10.9% to £44.7m (H1 2013/14: £40.3m).

London bus revenue was 2.8% up to £228.9m (H1 2013/14: £222.7m); operating profit increased 3.8% to £21.7m (H1 2013/14: £20.9m), and the operating margin improved slightly from 9.4% to 9.5%.

Regional Bus revenue was 4.1% up to £181.4m (H1 2013/14: £174.3m); and operating profit by 13.0% to £23.4m (H1 2013/14: £20.7m). The operating margin improved from 11.9% to 12.9%. Regional Bus has overtaken London Bus in its contribution to the overall profit.

Rail revenue increased by 18.0% to £1,148.4m (H1 2013/14: £973.0m), but operating profit fell 2.9% to £10.2m (H1 2013/14: £10.5m), and the operating dropped from 1.1% to 0.9%.

Govia runs four rail passenger franchises: Southeastern; Southern; London Midland; and (since September 2014), GTR (Govia Thameslink Railway) in a 65:35 joint venture agreement with Keolis.

The rail results partly reflect the fall in both passenger revenues and passenger volumes suffered by London Midland.

666/Feb 15

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