Go-Ahead on track with bus profit target

Link: http://www.insidermedia.com/insider/nort...92665-?utm

Go-Ahead has said it is making good progress towards its target of growing operating profit from its bus division to £100m by 2015/16 as it prepares to post full-year results in line with expectations.

In a pre-close update, Go-Ahead, which has significant operations in Newcastle, said trading across the group had remained resilient and overall expectations unchanged, although it expects a greater proportion of group operating profit to come from its bus division.

"I am pleased to report continuing resilience across our operations," said group chief executive David Brown.

"Both our bus and rail divisions have seen improved growth in passenger numbers in recent weeks, following the effect of adverse weather previously reported in the third quarter.

"Our bus division continues to trade well and is on track to deliver a better than expected result for the full year as we start to see the benefits of cost initiatives coupled with continued revenue growth. We are making good progress towards our target to organically grow bus operating profit to £100m by 2015/16.

"In rail, our team is working hard to deliver strong bids for both the Docklands Light Railway and Thameslink franchises. We also look forward to working with the Department for Transport in the coming months to agree terms for the full franchise extensions for Southeastern and London Midland announced in March.

"Whilst our overall expectations for the full year remain unchanged, we now expect a greater proportion of group operating profit to come from the bus division."