Go-Ahead expects rail to deliver higher than expected full-year profit

- Overall solid trading at train and bus divisions- Expects operating profit at train division to be ahead of previous expectations- Full-year forecasts for bus operations remain unchanged Train and bus group Go-Ahead reported a solid overall performance at both of its main businesses and while its full-year expectations for its bus operations remain unchanged, it now expects the rail division to deliver operating profit ahead of previous expectations, with second half profits slightly lower than first half."Looking ahead to next year, we expect our bus division to continue to make good progress towards our bus operating profit target of £100m by 2015/16. At this stage we expect a similar rail performance in the next financial year," it said in a pre-close update ahead of its full-year results in September.Go-Ahead's regulated and deregulated bus operations continue to deliver a steady performance and it remains on course to achieve its operating profit target of £100m by 2015/16.At its rail division, which operates the Southern (including Gatwick Express), Southeastern and London Midland franchises through its 65% owned subsidiary Govia, lower energy costs and better than expected operational performance in the fourth quarter means it now expects second half rail operating profit to be ahead of previous expectations.Go-Ahead said it remains in a good financial position with strong cash generation and a robust balance sheet, underpinning the dividend policy."Due to our expectations of higher rail operating profit for the full-year and slightly better working capital, we now anticipate net debt to be around £70m at the year end," the company explained.CJ