Go-Ahead eyes tough rail conditions
Bus and trains operator Go-Ahead said it remains confident of delivering full year result in line with company expectations but warned its rail business will be hit by tough economic conditions in the next financial year.
Bus and trains operator Go-Ahead said it remains confident of delivering full year result in line with company expectations but warned its rail business will be hit by tough economic conditions in the next financial year.
"Looking ahead to the next financial year, we expect the performance of our bus business to remain strong. In rail, we expect slower than assumed economic growth rates to impact performance and, as stated in April, £6m of rail bid costs are forecast next year," it said in a company statement.
Go-Ahead, which operates London Midland, Southern (including Gatwick Express), and Southeastern rail and franchises, said it continues to focus on its key strengths.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

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
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However the "current economic environment does present challenges going forward as the bid model in 2009 assumed stronger underlying economic growth rates at this stage in the franchise," it said.
Southern is expected to deliver like-for-like revenue growth of around 8.5% and Southeastern 10% growth. London Midland revenues are expected to increase by 8%.
Like-for-like passenger revenue at its bus business is expected to rise by 4% for the financial year and it sees passenger growth of around 3%.
Chief executive of Go-Ahead David Brown said: "Go-Ahead continues to perform well, with all our companies seeing revenue growth in the year to date."
"In line with our strategy to grow our bus division, we have acquired a number of businesses during the year and have driven organic growth through smart-ticketing and providing high quality value for money services."
"In rail, we are pleased with the performance of our three franchises despite the challenging economic environment."
CJ
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Review: Eden Roc Cap Cana – fun, sun and golf in the Caribbean
Travel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yet
The chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry