Go-Ahead on right road to meet expectations

Bus and trains operator Go-Ahead Group reported a solid first quarter, with growth seen in both parts of the business, leaving it on track to meet full year expectations.

Bus and trains operator Go-Ahead Group reported a solid first quarter, with growth seen in both parts of the business, leaving it on track to meet full year expectations.

Outside London, the company's year-to-date revenue, excluding acquisitions, increased by around 4%, with passenger numbers up by around 3%, although a recent weaker concessionary performance offset stronger growth in fare-paying passengers. In London, year-to-date revenue and mileage rose by over 4% and 2%, respectively.

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

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

Sign up

In a statement the company said: "Overall, trading in the third quarter has been solid and, whilst we continue to be cautious about the wider economic outlook, we remain confident that we will deliver a full year result in line with our expectations.

Due to recent acquisitions in the group's bus division, year end net debt is expected to be higher than previously anticipated at around £95m. The group seemed sanguine about the debt position, emphasising that it remains in a good financial position with strong cash generation, enabling it to continue churning out the divis while looking for suitable acquisitions.

NR

MoneyWeek

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.