Go-Ahead reports revenue growth of 6%

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Go-Ahead has reported a ‘strong set of results’ due to an increase in passenger demand.

Go-Ahead is part of a joint venture responsible for rail franchises London Midland, Southeastern and Southern and also owns a fleet of just under 4,000 buses.

Pre-tax profits rose 11% to £97.6 million and revenues were up 6% to £2.3 billion.

The company reported a 4.2% rise in passenger numbers on its trains despite raising ticket prices by over 6% in January. The company said this is down to people choosing the train over their cars because of the rise in petrol prices.

Go-Ahead’s bus services saw operating profits rise 24% to £33.7 million following an increase in passenger numbers of 4.7%.

The RMT has said the results ‘confirm the rail franchising rip-off’ after ‘thousands were left stranded in the snow last winter’ by Southeastern due to adverse weather conditions.

Commenting on Go-Ahead’s results, Chairman, Sir Patrick Brown, said:

“I am pleased with the performance of the Group this year. Despite facing challenging economic conditions in the last 12 months and the adverse weather in the first half of the year, all of our operations have seen growth in like-for-like passenger revenue and passenger journeys.

“Our bus and rail operations remain fundamentally strong and have benefited from passengers leaving their cars at home and choosing better value public transport alternatives.

“Our outlook for the next financial year has not changed since our trading update in June 2011. We are assuming that the broad underlying operating trends experienced in the financial year will continue throughout the financial year to 30 June 2012 and that around £13m of the rail contract management benefits achieved in 2011 will not recur.

“In rail, we will continue to drive revenue and control costs to help offset the challenges of reduced subsidies/increased premia in our franchises.

“Our balance sheet, cash flow and financing are strong and we continue to view the maintenance of the dividend as a priority.

“We have started the new financial year well and trading has been in line with the Board’s expectations.”

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