Go-Ahead banks on the Olympics for a boost over summer
RAIL and bus group Go-Ahead is hoping the Olympics will boost its takings, after the firm posted a 13 per cent fall in half-year profits to £44m partly due to one-off costs.
Go-Ahead said its focus on “more vibrant urban areas” is continuing to build passenger numbers, shown by its “robust” six per cent revenue rise to £1.2bn in the last six months of 2011.
The Newcastle-based company said its seven minute “Javelin” train route between St Pancras and the Olympic Park stands to be a money-spinner during the Games in August.
Passenger numbers rose on Go-Ahead’s rail routes at the end of 2011, and the firm predicted yesterday that from April, its train division will be a “net contributor” to the department for transport – meaning state subsidies would no longer be required.
Go-Ahead said it will consider bidding for the various rail franchises up for renewal in the next few years, to add to its roster of Southeastern, Southern and London Midland.
The company also cheered the growing use of smart ticketing such as Oyster Cards across more routes, which it says has the potential to generate more organic growth.
But bus operations fared less well, with a £1.7m fall in profits from UK buses during the period. Go-Ahead blamed roadworks and tougher targets for a drop in its quality incentive bonus paid out on its regulated London routes.
The firm’s shares fell four per cent to close at £12.74 yesterday.