LONDON (Alliance News) - FTSE 250-listed transport operator Go-Ahead Group PLC on Thursday said it expectations for the year remain unchanged as it said it expects revenue growth across its rail and bus operations, despite a decline in passenger journeys in the latter business.
Go-Ahead said it expects revenue for the financial year to June 27 in its regional bus operations to grow by 3%, despite expecting a 1% decline in passenger journeys on its services. It said both revenue and passenger journeys slowed in the fourth quarter given the ongoing economic weakness in the north east of England and the impact of roadworks in the Oxford and Brighton areas.
For its London bus operation, the company is expecting revenue to grow by 1.5% but said its mileage is set to fall by 1%. Mileage increased in the fourth quarter as new contracts started, but the group said revenue related to its quality incentive contract is still being impacted by roadworks and congestion in the capital.
The company's rail operations are all expected to show robust passenger revenue and journey growth in the year, Go-Ahead said. Its Southern Rail franchise has performed in line with expectations and is set to show passenger revenue growth of 7% for the year on the back of a 4% rise in journeys. Southeastern is performing ahead of Go-Ahead's expectations, it said, and is set to post passenger revenue growth of 8% on a 4% rise in journeys.
Go-Ahead said its full-year expectations remain unchanged and said it remains committed to achieving more efficiencies in its bus business, while its rail arm is trading in line with its forecasts.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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