GOG.L Share News (GOG)

(Sharecast News) - FTSE 250 transport operator Go-Ahead said on Wednesday that it has secured a two-year bus contract extension in Singapore.
The Land Transport Authority (LTA) of Singapore has granted an extension to Go-Ahead's business there to continue operating around 450 buses in the Loyang region. The extension will begin in September next year and run until September 2023.

This follows the initial five-year contract which saw the company's entry into the Singapore bus market in September 2016.

Go-Ahead said that in its four years of operation in Singapore, it has introduced a series of new services on behalf of the LTA, has helped improve customer satisfaction and has applied innovative IT systems which improve efficiency of drivers and engineers.

Chief executive officer David Brown said: "Go-Ahead Singapore has been a great addition to the group and I am delighted that we will be running buses in Singapore until at least 2023. Our experienced management team has led the delivery of remarkable performance on behalf of the LTA in recent years and has played an important part in Singapore's response to the Covid-19 crisis."

At 1225 BST, the shares were up 3.6% at 673.50p.

Broker Liberum said: "We had expected the extension to be awarded and have already included the contribution in our forecasts. Nonetheless, confirmation of the extension is positive and leaves the group well-positioned to bid for other bus contracts in Singapore as they become available."