28 Sep 2021 07:00
The Go-Ahead Group plc 4 Matthew Parker Street, London, SW1H 9NPTelephone 020 7799 8999 |
PRESS RELEASE
28th September 2021
THE GO-AHEAD GROUP PLC
("GO-AHEAD" OR "THE GROUP")
UPDATE ON SOUTHEASTERN CONTRACT, BOARD CHANGE AND FULL YEAR RESULTS DATE
The Board of Go-Ahead regrets to announce that the Department for Transport ("DfT") has chosen to appoint the Operator of Last Resort (OLR) to take over delivery of passenger services on the Southeastern franchise from 18 October 2021, when our existing agreement expires. While the Group is naturally disappointed by this, the decision relates only to Southeastern. Our other rail business, GTR, is not affected.
This decision is a consequence of ongoing discussions with the DfT regarding the historical calculation by London and Southeastern Railway Limited ("LSER") of the profit share over a number of years and related additional matters, as disclosed in our announcement on 27 August 2021.
LSER's shareholders (Go-Ahead and Keolis UK) commissioned an independent review into this matter on 11 August led by their respective Chairs. Although the independent review is ongoing and the contracts concerned are highly complex, the Group acknowledges that errors have been made in relation to the franchise. The Group has repaid the £25 million referred to in the DfT's statement of this morning and will provide a detailed update on further liabilities in its full-year results.
The Go-Ahead Group's Chairman, Clare Hollingsworth, said: "It has always been this Group's intention to provide the best possible public transport, and to work in partnership with the Government and related agencies. We recognise that mistakes have been made and we sincerely apologise to the DfT. We are working constructively with the DfT towards a settlement of this matter."
As a consequence of these ongoing discussions with the DfT regarding the LSER profit share, the announcement of the Group's results for the year ended 3 July 2021, currently scheduled for 30 September 2021, has been postponed. A revised announcement date will be confirmed in due course.
The Group also advises that, after a period of 13 years with the Group, Elodie Brian has decided to resign as Group Chief Financial Officer and will be standing down from the Board with immediate effect. A process to appoint a successor is underway and, in the meantime, Gordon Boyd has agreed to join the Board as Interim CFO with immediate effect. Gordon is a highly experienced interim CFO and has previously held senior financial roles within Drax, Infinis PLC and Capita PLC.
The Group's financial results for the year ended 3 July 2021 (including the expected provisions related to the matters under discussion with the DfT but excluding any potential financial penalty) remain in line with the Board's expectations.
There is no further information required to be disclosed relating to Gordon Boyd pursuant to Listing Rule 9.6.13.
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:
Investor Relations
Citigate Dewe Rogerson - Holly Gillis 07940 797560
Media
Go-Ahead Press Office communications@go-ahead.com / 07977 343846