East Anglia: Profits leap at Hedingham, Chambers and Anglian Bus operator Go-Ahead

David Brown, chief executive at Go-Ahead David Brown, chief executive at Go-Ahead

Thursday, September 4, 2014
11:43 AM

Public transport operator Go-Ahead today reported strong growth in annual profits after a better than expected year for both its bus and rail divisions.

To send a link to this page to a friend, you must be logged in.

Go-Ahead posted revenues of £2.702billion for the year to June 28, up 5.1% compared with £2.672bn for the previous 12 months, restated to reflect accounting changes.

Bottom-line pre-tax profits were 44.5% higher, at £91.2million against £63.1m a year earlier, benefiting from a £15m one-off gain reflecting reduced pension liabilities which was partly offset by £3m of restructuring costs at its London Midland rail franchise.

Excluding exceptional items, pre-tax profits were 25.4% higher at £79.1million. A proposed total dividend for the year of 84.5p per share represents an increase of 3.5p per share or 4.35% compared with last year.

Go-Ahead said that all of its deregulated bus operations, which include the Chambers, Hedingham, Anglian Bus and Konectbus fleets in Essex, Suffolk and Norfolk, achieved revenue growth during the year.

Total revenue from deregulated services was 3.9% higher at £350.8m, representing growth of 4.3% stripping out the boost to the previous year’s figures from the London Olympics, and operating profit was up 15.1% at £41.9m, with margins improving from 10.8% to 11.9%.

The group’s regulated bus operations in London saw revenue grow by 6.1% to £449.7m, or by 7.5% excluding the Olympics effect, and operating profit was 7.2% higher at £41.6m, with margins slightly up at 9.3% against 9.2%.

Go-Ahead said the total operating profit for its bus operations of £83.5m represented “good progress” towards its target of £100m by 2015-16, with the figure having benefited from cost savings totaling £2.9m since the target was set in 2012.

The group’s rail division generated total revenue of £1.902bn, with passenger revenue up by 5.4% or by 7.6% excluding the impact of the Olympics. Operating profit grew by £8.2m to £19.7m, with margins improving to 1.0% from 0.6% the previous year.

Its London Midland, Southern and Southeastern franchises achieve passenger reveue growth of 6.8%, 5.8% and 4.3% respectively.

The year also saw Go-Ahead win the bidding contest for the new Thameslink, Southern and Great Northern franchise, which will operate as GTR (Govia Thameslink Railway) and is the largest deal of its kind ever awarded in the UK, although it missed out with a bid to operate the new Crossrail route.

Go-Ahead chief executive David Brown said: “The group performed very well in the financial year with our bus and rail divisions both delivering strong results, which were significantly ahead of our initial expectations for the year.”

He added: “Record numbers of passengers travelled on our services. Our deregulated bus division achieved a sector leading customer satisfaction score of 92%.

“Another key achievement in the year was winning the Thameslink, Southern and Great Northern franchise on the basis of both quality for the passenger and value for money to the taxpayer.

“We are also pleased to be on the shortlists for the Department for Transport’s Northern and TransPennine rail franchise competitions and we look forward to submitting strong bids, working collaboratively with industry partners.”

0 comments

Comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Ipswich Star visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Ipswich Star staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Forgotten your password?

Not a member yet?

Register to create your own unique Ipswich Star account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

ADVERTISEMENT

ADVERTISEMENT

loading...
iwitness24 Your news is our news Facebook Like your local paper Twitter Join the conversation Ipswich Borough Council

ADVERTISEMENT

ADVERTISEMENT