Go-Ahead drives profits higher

Transport group Go-Ahead lifted annual profits by 39% to £91.3m (€134m) today after benefiting from a strong performance by its bus division.

Go-Ahead, which runs the Southern and Thameslink rail franchises as well as a network of bus operations, said an upsurge in public transport use in London and the South had been another factor in its strong performance.

Turnover in the year to July 3 improved by 13% to £1.244bn (€1.8bn)with the bus division lifting its like-for-like contribution to £362m (€531.75) from £311m (€456.8m).

Operating profits in buses rose to £51m (€74.9m) from £43.9m (€64.5m), although Go-Ahead said margins had come under pressure in the second half as a result of pay increases. The company’s hedging policy managed to offset much of the rise in fuel costs over the final quarter of the year.

In rail, Go-Ahead said all its franchises produced results ahead of budget with turnover up to £620m (€910.6m) from £561m (€824m) a year earlier. During the period, Go-Ahead’s Thames Trains franchise, which runs services between London Paddington, Oxford and the Cotswolds, was transferred to First.