Robust rail performance helps London Midland operator stay on track

LONDON Midland train operator, The Go-Ahead Group, has said it full year expectations remain on track after a robust first quarter.

Underlying revenue performance across its three rail franchises – Southern (including Gatwick Express), Southeastern and London Midland – were said to be in line with expectations.

It said that as in Q4 last year, reported passenger journeys across all companies increased significantly due to a change in Department for Transport methodology in Travelcard allocations.

In a statement ahead of its AGM, the group said the London Midland operation had seen a 6% increase in passenger revenues during Q1 – 9% excluding the Olympic – when compared with the same period last year.

Passenger journeys rose 2% over the period – 4.5% excluding the Olympic effect.
David Brown, Group Chief Executive of Go-Ahead, said: “Our bus and rail businesses have delivered a robust performance, in line with our expectations.
 
“In rail, our bid team is working hard to deliver strong bids for the Thameslink and Crossrail franchise competitions and we have begun discussions with the Department for Transport regarding the proposed extension for Southeastern.
 
“Overall, I am pleased with the group’s performance and remain confident that the full year result will be in line with our expectations.”
 
It said while it expected trading in its rail division would remain challenging in the short term, it remained committed to delivering long term value through operating in the UK rail market.
 
In outlook, the statement added: “Overall, trading in the first quarter of the year has been robust and we remain confident that we will deliver a full year result in line with our expectations.

“The group remains in a good financial position with strong cash generation and a robust balance sheet, underpinning the dividend policy and allowing flexibility to pursue value-adding opportunities. We continue to focus on our key strengths of providing high quality, locally-focused and innovative transport services.”