Bus and train operator Go-Ahead Group (LON:GOG) has reported annual passenger revenue growth across all of its companies, clocking up over one billion annual passenger journeys for the first time in the group's history. Investors warmed to news that the group's operating performance had beaten expectations, with operating profit for the year coming in at £102.0m, sending the shares nearly 5% higher to 1142p.

Go-Ahead said it continued strong cash management and had a robust balance sheet. The total dividend for the year was maintained at 81p per share. Revenue was £2.201bn in the year to 3rd July (2009: £2.187bn), with the increase of £14.4m consisting of a reduction of £194.3m due to a change in access charge regime subsidy and an underlying increase of £208.7m, or 9.5%. Overall operating performance was some £5m ahead of expectations, with operating profit of £102m supported by a strong finish to the year from bus operations and lower than anticipated electricity costs in the rail division.

Strong cash management resulted in cashflow from operations being well ahead of expectations at £160.6m (2009: £233.4m) and net debt remained low at £88.3m (2009: £91.0m). Capital investment was slightly ahead of depreciation, as expected, partly driven by franchise commitments in both Southern and London Midland. The group made good progress with bus acquisitions in the year, with a total investment of £37.2m, of which cash consideration was £35.2m.

Chairman, Sir Patrick Brown, said: "We are pleased with the progress we have made this year in challenging economic conditions. All of our bus and rail operations have increased passenger revenue, highlighting the quality and value for money of our services. We have sold most of our aviation services division and started our yellow school bus joint venture in North America. We have also acquisitively grown our bus operations in the UK, leading to more than one billion annual passenger journeys on our bus and rail operations for the first time in our history. We are working closely with the new Government and welcome its review of future rail franchising announced in July 2010. In summary, we are in good financial shape and continue to believe in the fundamental strengths of public transport."

Sir Patrick noted that the group continued to be cautious on the near term prospects for the UK economy and the outlook for the next financial…

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