Go-ahead Share Price (GOG)

He concluded: "These good results underpin my confidence in our ability to achieve our target of 100m Bus operating profit by 2015/16." Full-year outlook While the company said that full-year results would be broadly in line with current forecasts, operating profits at the Bus division are expected to be "slightly higher than management's previous expectations" while Rail profits will be "slightly below". Go-Ahead said that the second half of the year is expected to remain "challenging" for the Rail division, mainly due to weakness to the Southern franchise, one of its three rail franchises. "There has been weakness across the network and we are working closely with Network Rail to help improve performance. We expect the franchise to remain profitable this financial year and a cost efficiency programme has been introduced in preparation for entering revenue support in September 2013."

Revenue rose 8.1 per cent to 1,296.6m pounds in the six months ending December 29th compared to the same period in 2012 at FTSE 250-listed bus and train operator Go-Ahead, with both the Bus and Rail divisions showing growth. However, pre-tax profit contracted 1.8% to �43.2m over the corresponding time frames. Operating profit fell 1.0% to �51.2m, while the operating profit margin slipped from 4.3% to 3.9%. While profits in Rail remained weak, the company managed to grow its bottom line in the Bus division with operating profit rising by 5.4% to �37.1m in spite of "significant" fuel cost headwinds. It expects Bus to contribute a greater proportion of earnings for the full year. The company maintained its half-year dividend at 25.5p. David Brown, Group Chief Executive of Go-Ahead, commented: "I am pleased to report a good set of results for the first half of the financial year. Our focus on running high quality, convenient services and our industry leading marketing strategy have continued to attract more passengers on to our value for money services.

Go-Ahead Group: HSBC ups target price from 1180p to 1415p and upgrades to overweight.

Go-Ahead Group: Nomura cuts target price from 1513p to 1493p staying with its buy recommendation.

Securing these benefits for passengers represents a firm yellow-card for London Midland and some financial benefit for those who have been hardest hit by their poor performance." Go-Ahead said in a statement: "We acknowledge the impact that this has had on our passengers and we have now put measures in place to ensure we have sufficient drivers to operate our services. "We also welcome the confirmation that the London Midland franchise has been extended until September 2015 which gives us the opportunity to provide longer term investment in our services for the passengers' benefit."

The government has announced that rail passengers disrupted by cancellations and delays last year on the London Midland line will get a seven million-pound package of benefits. Rail passengers who suffered disruptions last year will receive free travel passes and cheap tickets "thanks to tough action taken by the government", Transport Minister Norman Baker announced on Thursday. After months of consultation with the Department for Transport, London Midland operator Go-Ahead has agreed on a £7m package of benefits. "London Midland has cancelled or delayed hundreds of services in recent months. On repeated occasions, they were not able to provide enough drivers and some services had to be cancelled, with severe delays to services, and they have fallen short both of everyone's expectations and their franchise obligations," Baker said.