JOHN LAWSON | INVESTEC
What it has done in a challenging market is encouraging. Its focus on maintaining the dividend is a very important sign of its confidence and commitment. Right now nobody knows what the government is going to do in order to cut spending, but it seems for Go-Ahead it might not be as bad as feared.
JONATHAN JACKSON | KILLIK & CO
We believe the company offers both recovery potential and outsourcing opportunities, combined with green public transport credentials. The stock currently trades at an undemanding valuation of 7.8 times March 2011 earnings and we remain buyers. Today’s statement provides a good read-across for FirstGroup, our preferred operator in the sector.
PAUL HICKMAN | KBC PEEL HUNT
I think generally the results have come in ahead of expectations, and the debt level was better than we had thought. The cash performance was much better. We are holding our numbers for 2011, and rate shares a ‘hold’. But an attractive dividend per share yield provides support in uncertain times.