28 Jun 2022 16:07
The Go-Ahead Group plc 4 Matthew Parker Street, London, SW1H 9NPTelephone 020 7799 8999 |
PRESS RELEASE
28 June 2022
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
THE GO-AHEAD GROUP PLC
("GO-AHEAD" OR "THE GROUP")
REVISED NORWAY RAIL CONTRACT
Go-Ahead is pleased to announce that, following discussions over a number of months, a new agreement has been reached between the Norwegian Railway Directorate and Go-Ahead Norway A/S, regarding the structure of its rail contract.
Under the original contract, which began in December 2019, the revenue risk associated with changes in passenger demand rested with Go-Ahead. During the COVID-19 pandemic, the Norwegian Government provided financial support to rail operators, preventing material losses.
The amended contract takes effect from 1 July 2022 and runs for the duration of the original contract, until December 2027 (plus a two-year extension option until December 2029). The contract provides a revenue support scheme until the end of the contract. The amended contract also includes an incentive scheme linked to revenue growth. As a result of these improved contractual arrangements, the Group expects to significantly reduce the £66.2m onerous contract provision relating to its rail operation in Norway in its full year results for the year ending 2 July 2022.
Christian Schreyer, Group Chief Executive, The Go-Ahead Group, said:
"We're pleased to have reached an agreement with the Norwegian Government which puts our rail contract onto a satisfactory footing.
"We're proud of our colleagues at Go-Ahead Nordic who deliver an outstanding service and who have achieved the best customer satisfaction ratings on Norway's railway network."
The person responsible for arranging the release of this announcement on behalf of the Group is Carolyn Ferguson, Company Secretary
ENDS
For further information, please contact:
Media - Andrew Clark, Go-Ahead | 07977 343 846 |
Investors Relations - Holly Gillis, Citigate Dewe Rogerson | 07940 797 560 |
GO-AHEADGo-Ahead is a leading public transport operator, connecting communities through bus and rail services. Our purpose is to move you, and the next generation, towards a smarter and healthier planet.
We employ more than 27,000 people across our bus and rail businesses in the UK, Singapore, Ireland, Sweden, Norway and Germany. In addition to the travelling public, our customers include governments and local authorities. We are committed to tackling climate change, poor air quality and social isolation.
BUS Go-Ahead is one of the UK's largest bus operators. We run a fleet of more than 6,000 buses across England and run a quarter of London's buses for Transport for London. Outside London, we serve high-density commuter markets in the North East, Greater Manchester, East Yorkshire, Oxfordshire, East Anglia, the South East and the South West of England. Internationally, we operate buses in Singapore, Ireland and Sweden.
RAIL We operate rail franchises in the UK, Germany and Norway. In the UK, we run the country's largest passenger contract, GTR (Southern, Gatwick Express, Great Northern and Thameslink). This is managed through our 65 per cent owned subsidiary Govia, which is 35 per cent owned by Keolis. In Germany and Norway, our contracts are run exclusively by Go-Ahead.