Go-ahead rail arm puts profits on track

UK transport group Go-Ahead today said an “excellent” performance from its rail business helped boost profits by a fifth, but the group warned the division could swing into the red this year.

The Newcastle-based company reported underlying pre-tax profits up by £8.2m (€12m) to £110.1 m (€162.7m) in the year to June 30.

Go-Ahead’s rail arm offset woes seen at its airport services operation, which suffered amid the security disruption at Heathrow and Gatwick.

However, the rail business is set to see a tougher year ahead, as rising cost pressures and a lack of Government subsidies are expected to knock operating profits, according to the group.