(Adds detail, background, share price)
LONDON, May 22 (Reuters) - Britain's Go-Ahead Group
warned that the impact of the novel coronavirus would hit
profits this year, and uncertainty around the use of public
transport once lockdown eases means it cannot provide guidance
on its new financial year.
The group's shares fell 16% in early trading to 1,012 pence.
In Britain, Go-Ahead's main market, the government is
providing financial support to companies who operate public
transport so they keep services running despite lower use during
the coronavirus pandemic.
Even with that help, the company said profits would drop
compared to last year, and it was working to try to cut costs. A
rail contract in Germany was challenging and would also drag on
profit, hampered by driver shortages and reliability issues.
Go-Ahead forecast that group operating profit for the year
ended 27 June would be in the range of 63 million pounds ($76.91
million) to 75 million pounds. That would represent at least a
38% fall compared to the 121 million pounds it made in the 12
months to 29 June 2019.
Financially, the group said it was well-placed to withstand
the crisis, and had confirmed that it could access a government
COVID Corporate Finance Facility if it needed.
The group's UK activities, regional buses, the GTR rail
network in London and south east England and London buses, were
benefiting from government support, it said, but said there was
uncertainty in the future.
As such, it said it could not provide guidance for the
financial year which starts at the end of June.
"In all of our geographies material uncertainties remain
around the easing of restrictions and the implications this will
have on public transport usage. The quantum and duration of
government support measures, particularly in our regional bus
business, also remains uncertain," the company said.
($1 = 0.8191 pounds)
(Reporting by Sarah Young; editing by Kate Holton)
