The Go-Ahead Group plc today announces its first quarter trading update for the period from 3 July 2016 to 31 October 2016 ahead of its Annual General Meeting on 3 November 2016.
The first quarter growth rates reported in this statement are for the period from 3 July 2016 to 1 October 2016.
Our expectations for the full year remain unchanged with robust trading in the first quarter.
The Group remains in a good financial position, with strong cash generation and a robust balance sheet.
Bus:
Regional:
Revenue and passenger journeys have continued at a similar rate of growth to the second half of last year. Economic weakness in the north east continues to impact our operations in the region, supressing overall growth rates for the division.
First quarter growth rates:
|
Revenue
|
Passenger journeys
|
|
c. 2%
|
c.0.5%
|
Excluding the north east, our revenue growth was c.3% and passenger growth was c.1.5%.
London:
The rate of growth in revenue and mileage in London has slowed, in line with our expectations.
First quarter growth rates:
|
Revenue
|
Mileage
|
|
c.4%
|
c.0.5%
|
As previously reported, our fuel requirements are fully hedged to the end of 2018. Go-Ahead hedges its bus fuel costs in GBP.
Singapore:
In September we mobilised our bus contract in the Loyang region of Singapore and began the operation of 25 routes, operating 390 buses and employing 850 people. We have recently submitted our bid for another bus contract in this market.
Rail:
Our rail division operates the GTR, Southeastern and London Midland franchises through our 65% owned subsidiary Govia.
London Midland and Southeastern are trading well and both continue to make profit share payments to the DfT.
GTR’s passenger revenue and journeys have been adversely affected by strike action during the period.
As previously reported, the additional resources being invested in GTR to support service delivery continue to impact margins in the short term. Our margin expectations for the life of the franchise remain unchanged.
First quarter growth rates:
|
|
Passenger revenue
|
Passenger journeys
|
|
Southeastern
|
c.3.5%
|
c.1%
|
|
London Midland
|
c.8%
|
c.7%
|
|
GTR
|
c.-3%
|
c.-0.5%
|
Germany:
Mobilisation of our two German rail contracts is underway ahead of the contract start dates in 2019.