Go Ahead raises profit forecast as passengers increase
Transport group Go-Ahead said it expected its full-year operating profit to be ahead of its previous expectations as passenger numbers increased on its Southern, Southeastern and London Midland rail franchises.
“The previous consensus was around £108m and we’re ahead of expectations,” finance director Keith Down told Reuters in an interview.
The company, which operates commuter rail franchises through its majority-owned joint venture Govia, said it anticipated passenger revenue and number growth of around nine per cent and three per cent respectively on the Southern franchise.
On the Southeastern franchise, profit revenue and numbers grew by nine per cent and four per cent respectively.
“In particular, we’ve seen London recovering and being relatively vibrant. With unemployment stabilised, people are still having to travel,” said Down.
Go-Ahead said London Midland’s operational performance had continued to improve and it expected to see passenger revenue growth of around eight per cent in the year with passenger numbers rising by around six per cent.
House broker Investec lifted its full-year pretax profit forecast to £96m from £90m previously.