Go-Ahead Full Year Expectations Unchanged After Solid Third Quarter

LONDON (Alliance News) - Go-Ahead Group PLC Thursday said its full-year expectations remain unchanged following a "satisfactory" performance from both its rail and bus operations.

The FTSE 250-listed transport operator said revenue in its regional bus operation slowed in the third quarter of the financial year, as ongoing economic weakness in the north east hit passenger journeys, while it also took a hit from the ongoing roadworks in the Oxford and Brighton areas.

In London, revenue in the quarter and mileage both slowed due to the timing of anticipated contract losses. Roadworks and congestion also hit its performance in the capital, with revenue lower and expected to fall further in the fourth quarter. It also took a revenue hit as a result of strike action in the quarter.

In its Rail arm, its Southern franchise performed in line with expectations, while its Southeastern franchise is trading ahead of its expectations and is expected to continue to do so for the remainder of the year.

London Midland is also trading in line, with discussions ongoing with the Department of Transport over a direct award contract from March 2016 to June 2017.

"The overall trading performance of both our bus and rail businesses has been satisfactory and our expectations for the full year remain unchanged," said Chief Executive David Brown.

Shares in Go-Ahead were down 1.2% to 2,489.00 pence early Thursday.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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