LONDON (dpa-AFX) - Go-Ahead Group Plc. (GOG.L), a provider of passenger transport services, reported Thursday that its full-year expectations for the rail division are slightly below previous estimates, due to higher than expected costs associated with the GTR franchise and increased bidding activity in targeted markets overseas.
The bus division remains in line with previous expectations.
In its pre-close trading update for the six months ending December 31, ahead of its half year results on February 28, the company said it remains in a good financial position, with strong cash generation and a robust balance sheet.
In the Bus regional segment, passenger revenue for the first half is expected to be up about 1 percent and Passenger journeys would be up about 0.5 percent. Weakness in the north east continues to impact operations in the region, supressing overall growth rates for the division.
Excluding the north east, revenue growth was 2% and passenger growth was 1%.
In London bus business, first-half revenues would rise around 2.5 percent and mileage up 0.5 percent. Following a stronger than expected performance in the first quarter of the year, Quality Incentive Contract payments have since reduced, the company said.
Bus services in Singapore are operating well.
The company's rail division operates the GTR, Southeastern and London Midland franchises through 65% owned subsidiary Govia.
London Midland continues to trade well and is expected to make profit share payments to the Department for Transport (DfT) for the remainder of the franchise.
Copyright RTT News/dpa-AFX