Newcastle-registered Go-Ahead Group revenues rise nearly £190m

Go North East's operator the Go-Ahead Group saw pre-tax profits grow to £44.7m

© Guy Bell David Brown, chief executive Go-Ahead Group
David Brown, chief executive Go-Ahead Group

Newcastle-registered transport operators Go-Ahead Group plc have increased revenues by nearly £190m in the first half of its current financial year.

The firm behind several rail and bus franchises, including Go North East and southeastern, saw overall group revenues increase from £1.37bn to £1.56bn.

Results were in line with management expectations as pre-tax profits increased from £40.3m to £44.7m during the period.

David Brown, the Group’s chief executive, said second half results were expected to follow suit.

Operating profit was up 8.4% to £45.1m across the firm’s Bus division, while operating profits fell 2.9% to £10.2m across Rail operations.

Mr Brown: “I am pleased with the Group’s financial performance in the first half of the year, with overall operating profit of £55.3m.

“We believe that increased rail infrastructure investment is essential to improve services and we welcomed the Government’s £38bn programme of infrastructure investment last year. While an investment programme of this scale will deliver enormous benefit in the long term, it will inevitably result in disruption while infrastructure improvements are made. We acknowledge the significant effect this has on passengers and are working closely with Network Rail to minimise the impact of this disruption.

“Overall, the Board’s expectations for the full year results remain unchanged, with second half profits expected to be similar to those in the first half of the year for both our bus and rail divisions.

“The Group remains in a good financial position, with strong cash generation and a robust balance sheet supporting our progressive dividend policy and allowing flexibility to pursue value-adding opportunities.”

Go Ahead’s proposed interim dividend increased by 4.3% to 26.6p, in line with 2013/14 full year dividend increase.

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