Portfolio

Go-Ahead tops forecasts, ups guidance

By Iain Gilbert

Date: Thursday 21 Feb 2019

Go-Ahead tops forecasts, ups guidance

(Sharecast News) - Public transport providers Go-Ahead saw operating profits exceed expectations in the first half of its trading year, leading the group to up its full-year guidance.
Go-Ahead recorded a 5% increase in revenues to £1.92bn, principally due to new contract wins in its bus and rail units.

Bus operating profits came in slightly ahead of its previous trading year at £46.9m, while rail operating profits sunk 56.33% to £17.6m as a result of the end of its London Midland franchise in December 2017.

Operating profits fell 25.8% to £64.5m on the back of the struggling rail business and a "challenging market environment" but was still ahead of expectations.

Looking forward, chief executive David Brown said: "For the group overall, our full year expectations have increased, principally due to rail.

"We expect free cash flow generation to be strong, resulting in a reduction in net debt, excluding restricted rail cash, at year end and supporting the payment of dividends that are in line with our policy."

Go-Ahead restated its 30.17p interim dividend.

As of 0840 GMT, Go-Ahead shares were up 2.72% to 1,967p.

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