Transport group issues growth warning

British bus and rail group Go-Ahead today warned of a slowdown in growth in its lucrative London bus business, but denied it would impact profits.

Newcastle-based Go-Ahead said it expected “a period of relative stability” in the London operations, which account for more than 50% of its total bus business, after “substantial growth” in the last couple of years.

The group, which runs the London Central and London General bus firms, has seen turnover in the business grow by about 25% due to contract renewals at improved rates and network expansion through the capital’s congestion charge.

Chief executive Chris Moyes said that while Go-Ahead expected some expansion from its buses in the next year or two, growth rates were unlikely to match those of the last two years.

However, he said: “We’re not expecting them to depress profits.”

Go-Ahead, which also runs the Thameslink and Southern rail franchises, said pre-tax profits before goodwill and one-off items in the six months to January 1 rose to £49.6m (€71.9m) from £47m (€68.2m) in the same period the year before.