Go-Ahead on right road to meet expectations

Bus and trains operator Go-Ahead Group reported a solid first quarter, with growth seen in both parts of the business, leaving it on track to meet full year expectations. Outside London, the company's year-to-date revenue, excluding acquisitions, increased by around 4%, with passenger numbers up by around 3%, although a recent weaker concessionary performance offset stronger growth in fare-paying passengers. In London, year-to-date revenue and mileage rose by over 4% and 2%, respectively. In the rail division, Southern achieved growth in passenger revenue of around 9% as passenger journeys rose by more than 2% year-on-year. In the Southeastern division, passenger revenue was up over 10% and passenger journeys increased by almost 2%. London Midland saw strong passenger revenue growth of over 13% with passenger numbers up around 8%. In a statement the company said: "Overall, trading in the third quarter has been solid and, whilst we continue to be cautious about the wider economic outlook, we remain confident that we will deliver a full year result in line with our expectations.Due to recent acquisitions in the group's bus division, year end net debt is expected to be higher than previously anticipated at around £95m. The group seemed sanguine about the debt position, emphasising that it remains in a good financial position with strong cash generation, enabling it to continue churning out the divis while looking for suitable acquisitions.NR