(Alliance News) - Go-Ahead Group PLC on Thursday reported a resilient performance in the first half of its current financial year, but with additional costs associated with the coronavirus pandemic offsetting revenue growth.
The Newcastle upon Tyne, England-based passenger transport company said its adjusted operating profit slipped 6.5% to GBP56.1 million in the six months to January 2 from GBP60.0 million a year earlier.
Pretax profit fell by almost half, however, to GBP24.6 million from GBP49.0 million year-on-year, as the company recorded a GBP21.0 million charge associated with exceptional items.
More positively, revenue rose to GBP2.07 billion from GBP2.01 billion year-on-year.
The company highlighted that operations remain cash generative and liquidity is strong with GBP250.8 million of unused facilities and unrestricted cash at the half year end.
"As the economy opens throughout the spring, we expect to see passengers return, with evidence of pent up demand for leisure journeys, including high levels of staycations. Prior to the second lockdown, our regional bus services were up to 60% of normal passenger journeys, and while demand patterns across the day may be different, we anticipate a desire to return to city centres for work and leisure," said Chief Executive David Brown.
The company did not propose any dividend for the half-year. It had proposed 30.17 pence a year earlier, but then suspended this due to Covid-19. The company said it continues to work towards paying a dividend in 2021.
Go-Ahead Group shares were trading 5.2% higher in London on Thursday at 1,350.00p each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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