Thursday 6 June 2019 7:26 am

Go-Ahead shares thrive as it predicts higher sales

Go-Ahead expects revenues to be higher than originally thought in its London and international bus division, it said today.

Read more: Go-Ahead appoints new interim chief financial officer

The transport company also said it has seen its growth in passenger volumes and revenues in all regional bus businesses.

That sent Go-Ahead’s share price soaring 9.4 per cent higher in early trading to 2,060p.

Go-Ahead yesterday appointed former Southeastern finance director Elodie Brian as its chief financial officer.

Go-Ahead profits dropped by more than 50 per cent in the second half of last year due to the scrapping of its London Midland franchise and poor financial performance for Govia Thameslink Railway (GTR).

Yet today Go-Ahead said it had delivered revenue growth in all three of its business divisions.

Its regional bus division continued to see growing passenger volumes and revenues, albeit at a lower yield due to its targeted campaigns aimed at younger passengers.

Go-Ahead branched out into an Uber-style bus ride-hailing service in Oxford called Pickmeup in 2018.

Today it said the experiment was growing in popularity, with 25,000 people now registered with the app.

David Brown, Go-Ahead chief executive, said: “In bus, service performance levels in our London operations remain high resulting in continued growth in Quality Incentive Contract income.”

Read more: Go-Ahead profits climb despite franchise loss

“Service levels also remain high in our regional bus business, which recently achieved the industry’s highest ever customer satisfaction score of 92 per cent, with Go-Ahead topping the league table for punctuality and journey time,” he said.

“In rail, Southeastern remains the best performing large UK train franchise, with the highest levels of punctuality in its history,” he added.