London Midland owner expecting imminent decision on the service’s future

The owner of the London Midland rail franchise, Go-Ahead Group has said it expects to know the future of the service by the end of the current financial year.

Under current arrangements, the franchise is due to come to an end in October. The outcome of talks between the rail company and the Department for Transport are continuing.

In its half year results, Go-Ahead said London Midland continued to trade well and was expected to make profit share payments to the DfT for the remainder of the franchise. Profit share payments in the six-month period amounted to £5.9m (H1 2016: £nil).

London Midland reported 5.9% growth in passenger revenue and 4.3% growth in passenger journeys.

David Brown, Group Chief Executive, Go-Ahead, said: “By the end of this financial year we expect to learn the outcome of the West Midlands franchise competition.

“We hope to be given the opportunity to continue the progress that has been made during our time operating as London Midland which was recently named ‘the most improved organisation’ in the latest UK Customer Satisfaction Index.”

He added that the group’s bid offered good value for the Government and acceptable risks and returns for group shareholders.