(Sharecast News) - Go-Ahead Group has been issued a £23.5m penalty by the Department for Transport (DfT), it announced on Thursday - several million pounds less than it had budgeted for.
The London-listed passenger transport operator said the fine was for "good faith contraventions" of the franchise agreements for its former Southeastern rail franchise.
Go-Ahead was suddenly stripped of the Southeastern franchise in October last year, after an investigation into £25m of unaccounted-for taxpayer money.
The franchise, which operated suburban, commuter and high-speed trains in south-east London and the South East of England, was taken over by the DfT's 'operator of last resort', having been run by Go-Ahead's Govia joint venture with Keolis since 2006.
"In its results for the year ended 3 July 2021, published on 24 February, the group recognised a provision of £30m in its accounts in respect of a potential financial penalty from the DfT in relation to London & South Eastern Railway (LSER)," Go-Ahead said on Thursday.
"The amount payable to the DfT is expected to be settled from LSER's restricted cash balance."
At 1007 GMT, shares in the Go-Ahead Group were up 9.76% at 680.5p.
