Full steam ahead for Go-Ahead’s railway business as revenues rise

Transport group Go-Ahead said yesterday that profits from its rail operations were set to beat expectations this year, helped by a drop in energy costs.

The FTSE 250 firm, whose joint venture Govia runs the Southern, Southeastern and London Midland franchises, said that the railway business had performed better than expected, though profits were expected to fall in the six months to September.

Go-Ahead’s underlying rail passenger revenues rose between 6.5 and 7.5 per cent on its routes in the year to 28 June. The firm will take over the enlarged Thameslink, Southern and Great Northern franchise in July 2015.

Panmure Gordon’s transport analyst Gert Zonneveld said he expected to raise his earnings per share forecast by around eight per cent following the positive update.

Shares in the firm closed up almost four per cent at 2,263p yesterday.