Go-Ahead ups forecasts on high demand
BUS and train operator Go-Ahead said yesterday that its profit had been given a further boost as more motorists take public transport because of fuel price rises.
Go-Ahead, which has a fleet of 3,800 buses and is part of a joint venture responsible for Southern, Southeastern and London Midland rail services, said its buses represented “better value” than travelling by car.
House broker Investec lifted its full-year pre-tax profit forecast to £96m from £90m previously.
Go-Ahead said its marketing and improved operating standards were helping to drive growth as it forecast profits for the year to July will be ahead of previous expectations – the second upgrade in four months.
Chief executive Keith Ludeman, who is due to stand down next month, said: “Since the depth of the recession in 2008, Go-Ahead has seen solid growth.”
Go-Ahead expects full-year passenger revenues at its bus division, which includes Metrobus in Sussex, Plymouth Citybus and Oxford Bus Company, to increase after growth of around two per cent in passenger numbers.
Revenues at its Southern and Southeastern franchises have both seen a nine per cent lift, with London Midland seeing an improvement of around eight per cent. The company said that operating profit would be more than £108m.