Trains boost transport group outlook

British rail and bus company Go-Ahead today reported a better-than-expected performance from its trains in the second half as it forecast “satisfactory” full year figures.

Go-Ahead said particularly encouraging revenues and continued good cost control at its Southern and Thameslink franchises had contributed to the upbeat performance by its rail division.

The group added that its Thames Trains operation, which it lost to rival rail operator First Group on March 31, broke into profit before the end of the franchise.

Although Thames made a profit in every year of its seven-year tenure apart from 2003, Go-Ahead described the returns as modest, saying the operation was forced to use “most unreliable” infrastructure.

A spokesman today declined to reveal the profit figure, but attributed it to improved trading and better-than-expected results after “winding up the balance sheet” as the contract ended.