News

You're not signed in
Sign in
Sign up

Go-Ahead yr profit falls 24 percent

LONDON (Reuters) - Transport group Go-Ahead <GOG.L> posted a 24 percent fall in full-year profit, hit by lower sales at its rail unit, and said it was cautious on 2011 ahead of expected spending cuts by the government.The company, which operates commuter rail franchises through its majority-owned joint venture Govia, on Thursday reported a pretax profit of 88.7 million pounds on revenues 1 percent higher at 2.20 billion pounds for the year to the end of June.

02 September 2010 06:35 GMT

195287

Go-Ahead was expected to report an average pretax profit of 83.6 million pounds for the year, according to a Thomson Reuters I/B/E/S poll of 11 analysts.

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 percent higher, despite its London bus business suffering after renewing contracts on poorer terms.

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

Go-Ahead shares, which have fallen a fifth this year, closed at 1,088 pence on Wednesday, valuing the group at around 470 million pounds.

(Reporting by Rhys Jones; Editing by Victoria Bryan)

(c) Reuters 2012. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

Ads by Google

Share

No comments yet

You need to be logged in to comment.

Don't have a mySTV account? Create one now it's easy

Online bulletin: Monday February 13

 

Watch now

Video