Go-Ahead raises expectations for London and international bus units
By Iain Gilbert
Date: Thursday 03 Dec 2020
(Sharecast News) - Transport provider Go-Ahead Group said on Thursday that its outlook for the 2021 trading year had improved, leading the firm to increase expectations in its London and international bus divisions.
Go-Ahead highlighted that roughly 90% of revenues were secured via contracts, meaning that income was not at risk as a result of reduced passenger demand.
However, Go-Ahead added that its other divisions remained under pressure, with profits in its regional bus network expected to halve in the first half of the financial year.
The FTSE 250-listed firm's rail division was forecast to break even in the twelve months ending 31 July 2021, with its Southeastern and GTR subsidiaries performing well, while its German business was expected to make a positive contribution from 2023.
Chief executive David Brown said: "As set out by the Prime Minister in his ten-point green plan, public transport is vital to achieving the country's net-zero ambitions while supporting economic growth. This, combined with public transport's ability to support the health and wellbeing agenda, underpins my confidence in the prospects of the group.
"Prior to the second lockdown, we were pleased to see passenger journeys reaching nearly 60% of pre-crisis levels in some regions, showing people's desire to travel once restrictions are eased. With enhanced vehicle cleaning, the provision of hand sanitiser and mandatory use of face coverings, passengers can travel confidently on our services that are safe and clean."
As of 0905 GMT, Go-Ahead shares were up 5.59% at 906.50p.
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