LONDON (dpa-AFX) - Go-Ahead Group Plc. (GOG.L) Monday said it is too early to provide earnings guidance for the remainder of the current financial year due to the evolving nature of the coronavirus or COVID-19 pandemic. The Board has also decided to suspend the proposed interim dividend of 30.17 pence per share.
In its update on the current situation, the company noted that the Department for Transport announced temporary changes to rail franchise agreements across the UK, including GTR, to support rail operators through management contracts over the next six months.
The company is also in discussions regarding a potential Direct Award Contract for Southeastern and expect a decision to be made by the end of the month.
In regional bus, services have been reduced significantly due to declines in passenger numbers. Discussions with Government and local authority continue regarding financial and contractual support.
Go-Ahead said it retains a strong balance sheet with good liquidity under its existing facilities and maintains a positive dialogue with its lenders.
David Brown, Go-Ahead CEO, said, 'Once this crisis is over, strong bus and rail connections will be needed to rebuild our economy and support our communities; providing links to education, employment, retail and leisure facilities, and between friends and families. In our regional bus businesses, this means we need support from national government in the short term to maintain these vital lifelines for the long term.'
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