UK-based passenger transport services provider Go-Ahead Group Plc (GOG.L) on Thursday said it experienced solid trading in its fiscal year 2012 with robust performance in bus and that it remains confident to deliver a full year result in line with expectations.
Looking ahead to the next financial year, the company expects that the performance of bus business would remain strong. In rail, the company projects slower than assumed economic growth rates to impact performance along with rail bid costs.
Group Chief Executive 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 its pre-close trading update for the year ending June 30, the public transport operator said its deregulated bus division continues to see solid growth. The company expects full-year passenger revenue to increase by around 4 percent on a like-for-like basis and passenger journey growth of around 3 percent.
Including acquisitions, the company projects full-year growth in deregulated passenger revenue of around 7 percent and journey growth of around 4.5 percent. A stronger growth in fare-paying passengers is being partly offset by weaker concessionary performance.
In the regulated London bus operations, like-for-like revenue is expected to increase by around 6 percent in the full year and mileage up by around 4 percent. Including the recent acquisitions, revenue and mileage growth in London is expected to be around 7.5 percent and 5.5 percent, respectively.
Go-Ahead added that contract wins and the acquisition of the Northumberland Park bus depot in North London will result in strong mileage growth continuing into the next financial year.
In the rail division, the company projects Southern section's full year like-for-like passenger revenue growth to be around 8.5 percent and growth in passenger numbers to be around 1.5 percent, despite challenging economic environment.
Southeastern's growth in passenger revenue would be around 10 percent in the year, with passenger numbers growing by around 1.5 percent.
London Midland's growth in passenger revenue and numbers remains strong, with full year expectations around 13.5 percent and 8 percent respectively.
The company added that it remains in a good financial position, underpinning the dividend policy and allowing flexibility to pursue further value-adding opportunities.
The company is slated to release its full-year results on September 6.
Go-Ahead shares closed Wednesday's regular trading session at $1,219 pence, up 4 pence or 0.33 percent.
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by RTT Staff Writer
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