Passenger transport services provider Go-Ahead Group plc (GOG.L), in its pre-close trading update for the year ending June 29, 2013, reported an improvement in passenger numbers in both its bus and rail divisions in recent weeks, following the effect of adverse weather reported earlier in the third quarter. The company said its bus division continues to trade well and is on track to deliver a better than expected result for the year as it begins to see the benefits of cost initiatives coupled with continued revenue growth; whereas rail profits would be impacted by higher than expected costs in the division.
The company said in a statement, "We are making good progress towards our target to organically grow bus operating profit to £100m by 2015/16... Whilst our overall expectations for the full year remain unchanged, we now expect a greater proportion of Group operating profit to come from the bus division."
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