(Adds CEO, analyst comment, share price)
By Sarah Young
LONDON, Sept 4 (Reuters) - British transport companyGo-Ahead lifted its dividend for the first time since2008 after making progress towards a profit target and winning anew rail contract, prompting hopes of further dividendincreases.
Fresh from winning Britain's biggest rail franchise, theThameslink contract around London, Go-Ahead said on Thursday itwould raise its full-year dividend by 4.3 percent to 84.5 pencea share after operating profit jumped 19 percent in the twelvemonths to June 28.
"Profit's up, good revenue growth and being on target andwinning tenders so that's given us the confidence to do it. Wehope there will be more to come," Chief Executive David Brownsaid in an interview.
Go-Ahead shares climbed 3.2 percent to 2,345 pence, makingthe company one of the biggest risers on Britain's midcap index.The stock is up 34 percent since the beginning of the year,helped by the Thameslink win.
"We expect that the dividend per share will be increasedprogressively from now on," said Investec analyst John Lawson,who has a "buy" rating on Go-Ahead shares.
Lawson raised his estimate for the dividend for the nextfinancial year to 89 pence from 81 pence.
Go-Ahead reported operating profit of 103.2 million pounds($170 million) for its financial year, compared with the 86.7million pounds a year earlier, after carrying record numbers ofpassengers on buses and trains in Britain.
Brown said Go-Ahead had attracted more passengers byinvesting in smart, new and more fuel-efficient vehiclesequipped with wifi and smart card technology to make payingeasier.
The company said it was on track to meet its target ofgenerating 100 million pounds of operating profit from its busbusiness by the 2015/16 financial year. The company runs busesin London as well as in other parts of eastern and southernEngland. (1 US dollar = 0.6079 British pound) (Reporting by Sarah Young; editing by Mark Potter and TomPfeiffer)
