UK public transport operator Go-Ahead Group Plc (GOG.L) Tuesday said its chief executive Keith Ludeman has decided to retire on July 4, 2011. In an Interim Management Statement, the company said separately that its trading between July 4 and October 25 has been robust and that the company has not changed its expectations for full year ending July 2, 2011.
Ludeman would be succeeded by David Brown, currently Managing Director, Surface Transport of Transport for London. Brown will join the company as Deputy Chief Executive on April 1, 2011 and will succeed Keith Ludeman when he retires.
Ludeman has been with the company for the past 15 years. Commenting on Ludeman's retirement, Sir Patrick Brown, Chairman of the company, said, "Over the past 5 years Keith has led the company as Group Chief Executive, successfully implementing significant strategic change. His extensive knowledge of the transport industry, and his hands-on leadership style and breadth of vision, have enabled the company to weather recent economic turbulence, and to emerge strongly positioned for future growth."
Go-Ahead said separately that its operations continue to show good growth trends outside London, where like for like deregulated passenger numbers were up around 3% and revenue grew around 4% from last year. Majority of the growth came from fare paying passengers.
In London, like for like regulated mileage for the quarter was up around 1% from last year. Revenue, including QIC incentive income, slipped about 7% from last year, although it was slightly better than expected.
The company's rail division operates the Southern, Southeastern and London Midland franchises through its 65% owned subsidiary Govia. In Southern, revenue increased over 6% and passenger journeys were around 4% from last year.
In Southeastern, revenue growth was over 10% compared to a weak first quarter last year. The increase came mostly from additional journeys, including those generated by the full high speed service started on December 13, 2009.
Revenue growth in the London Midland franchise was just over 7%, benefiting from strong operational performance and about 4% increase in passenger numbers.
Keith Ludeman, the company's Chief Executive, said, "Even in the current economic climate, we continue to see growth in patronage in our rail and bus operations. Tough but effective cost control, combined with sensible acquisitions and a sharp focus on delivering the high quality services our passengers need and deserve, mean we are well placed to meet the challenges ahead."
Further, Go-Ahead said the Comprehensive Spending Review should have no direct impact on the company in the current financial year. At this stage, the company believes that by way of cost cuts and recovery through fares, it can manage any impact on the results in following years.
GOG.L closed Monday at 1,273 pence, up from the prior close of 1,254 pence, on 116,500 shares.
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