OTTAWA (dpa-AFX) - Go-Ahead Group Plc. (GOG.L) reported that its profit attributable to members for the six months ended 28 December 2019 rose to 27.8 million pounds or 64.5 pence per share from 26.1 million pounds or 60.6 pence per share in the prior year.
The increase in earnings reflected the increase in operating profit and the impact of the prior year exceptional item, relating to the Guaranteed Minimum Pensions ('GMP') equalisation charge on the bus pension schemes.
Profit before taxation was 49.0 million pounds up from 44.2 million pounds in the prior year.
Group revenue was 1.97 billion pounds up from 1.92 billion pounds in the previous year.
In recent weeks, the company believes coronavirus has affected travel on some of its bus and rail services.
The company said it is unclear how the coronavirus situation will evolve in the coming weeks. Travel patterns are likely to be impacted in the second half of the year.
Around 70% of its revenue is generated through management contracts, limiting exposure to the financial impact of reduced travel. The impact of this would be expected to have a greater impact on the financial performance of Southeastern and regional bus businesses than other parts of the Group.
The Board proposes an interim dividend of 30.17 pence, flat with the last year. It is payable on 17 April 2020 to shareholders registered at the close of business on 27 March 2020.
The company said its overall expectations for the full year have reduced slightly, citing lower than anticipated profitability in its regional bus business in the first half of the year, combined with the impact of adverse weather in recent weeks.
Profit improvement plans and operational efficiency initiatives have been implemented across the regional bus business and signs of improvements are already present.
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