Go-Ahead poised to meet annual forecasts

published 11 December 2012

Transport group Go-Ahead said trading in the second quarter of the year remained robust as it sticks with company forecasts for the full year to the end of June 2013.

In a trading update for the six months ending December 29th the group said it expects 8% revenue growth in its bus division outside London.

London operations are expected to show 17% growth, including the Olympics.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

It said revenue growth remains resilient across all of its three rail franchises: Southern, Southeastern and London Midland. Total passenger revenue is forecast to be 8%, 13% and 13% respectively.

Chief Executive David Brown said: "I am pleased to report a resilient performance across our operations, with all of our companies seeing growth in commercial revenue in the year to date."

"Our bus division continues to perform well in a challenging economic environment and we are well placed to meet our target to achieve bus operating profit of £100m by 2015/2016."

"Whilst we remain suitably cautious about the medium term wider economic outlook, we are encouraged by our robust performance," it added.

Go-Ahead said it is in a good financial position with strong cash generation and a robust balance sheet, underpinning the dividend policy and allowing flexibility to pursue acquisitions.