Partner Article

Go-Ahead remains cautious

TRANSPORT giant Go-Ahead today said it was cautious on its near-term prospects as it awaits the fallout from the Government’s Comprehensive Spending Review next month after it announced a 24% dip in pretax profits.

The Newcastle firm, which operates commuter rail franchises through its majority-owned joint venture Govia, reported a pretax profit of £88.7m on revenues 1% higher at £2.20bn for the year to the end of June.

The group, which also runs yellow school buses in North America, held the final dividend at 81 pence but said it was wary about the year ahead.

“We continue to be cautious on the near term prospects for the UK economy and the outlook for the next financial year remains difficult to predict, including any impact from the (UK) government’s comprehensive spending review expected to be announced in October 2010,” the company said.

Go-Ahead’s rail business saw ticket sales drop 1 percent but its bus unit delivered revenues 7.7% higher, despite its London bus business suffering after renewing contracts on poorer terms.

It said its North American bus joint venture was performing well.

This was posted in Bdaily's Members' News section by Ruth Mitchell .