(Adds CEO comments)
LONDON, March 12 (Reuters) - British train and bus operator
Go-Ahead Group warned its profits could be hurt by
coronavirus but said so far it had seen minimal impact on
demand.
"At this moment in time it is not affecting us, not in any
dramatic way because people haven't changed their travel
patterns yet," CEO David Brown said in an interview on Thursday.
But over the coming months, that could change.
"If people are told not to travel, that would not be good,"
he said.
Go-Ahead operates the GTR rail network in London and south
east England, as well as London buses and buses in other parts
of the UK.
When ask if coronavirus was a risk to this year's profit
guidance, Brown said it was, although he said Go-Ahead was
helped by the fact that three-quarters of its revenue is based
on contracts.
Go-Ahead on Thursday downgraded its annual profit outlook
"slightly" for the year to 27 June due to higher costs in its
regional bus business, and from the impact of storms in recent
weeks in the UK.
Adverse weather means people travel less, said Brown, while
in its regional bus units, worsening congestion in towns was
hurting profitability at the same time as costs rise as it
invests in greener vehicles.
Shares in Go-Ahead plunged 19% to 1,347 pence at 0901 GMT,
underperforming Britain's mid-cap market which was down 7%.
Analysts at Peel Hunt said they were downgrading their
forecast for Go-Ahead's full-year operating profit by 5% to 105
million pounds ($134 million).
($1 = 0.7829 pounds)
(Reporting by Sarah Young; editing by Paul Sandle and Jason
Neely)