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Full year results centre

FY16-teaserV2



Financial highlights

–   Overall results slightly ahead of management expectations

–   Achieved £100m bus target; adjusted operating profit* up 8.0% to £100.4m

–   Regional bus adjusted operating profit* up 9.4% to £53.3m. Passenger growth in the second half of the year

–   London bus adjusted operating profit* up 6.3% to £47.1m despite a significant reduction in QICs income

–   Rail adjusted operating profit* at £57.0m with a margin of 2.3%. Contribution to the DfT in the year of £222.4m

–   Statutory operating profit in bus and rail was £91.2m (2015: £80.7m) and £26.2m (2015: £16.1m) respectively

–   Strong cashflow and robust balance sheet

–   Proposed full year dividend increased by 6.5% or 5.85p to 95.85p

Strategic and operational progress

–   Difficult year in GTR – working closely with the DfT and Network Rail to improve services to customers

–   Sector-leading customer satisfaction score of 89% in regional bus operations

–   Record passenger numbers in rail division

–   Shortlisted to bid for the West Midlands franchise

–   Retained high levels of customer satisfaction at London Midland of 86%

–   Entry into new overseas markets with contract wins in the Singaporean bus market and German rail market

–   Adopted the voluntary ‘Living Wage’ across the Group, ensuring all employees, regardless of age, earn at least £8.25 per hour exceeding the ‘National Living Wage’ requirements

*Adjusted results exclude amortisation, goodwill impairment, exceptional operating costs, and the incremental impact of IAS 19 (revised)

N.B. The financial information presented herein is unaudited. Our audited financial statements will be available on our website www.go-ahead.com from 9 September 2016

Financial summary

Adjusted results*

FY’16
£m


FY’15
£m

Increase/
(decrease)
£m

Increase/
(decrease)
%

Revenue

3,361.3

3,215.2

146.1

4.5

Adjusted operating profit

157.4

134.7

22.7

16.9

Adjusted operating profit margin

4.7%

4.2%

 

 

Adjusted profit before tax

138.5

99.1

39.4

39.8

Adjusted earnings per share (p)

220.5

181.8

38.7

21.3

Proposed dividend per share (p)

95.85

90.0

5.85

6.5

*   Adjusted results exclude amortisation, goodwill impairment exceptional operating costs, and the incremental impact of IAS 19 (revised)

Statutory results

FY’16
£m


FY’15
£m

Increase/
(decrease)
£m

Increase/
(decrease)
%

Revenue

3,361.3

3,215.2

146.1

4.5

Operating profit before amortisation and exceptional items

120.4

114.7

5.7

5.0

Operating profit

117.4

96.8

20.6

21.3

Profit before tax

99.8

78.7

21.1

26.8

Basic earnings per share (p)

162.3

121.6

40.7

33.5

Proposed dividend per share (p)

95.85

90.0

5.85

6.5

 

 

 

FY’16
£m

FY’15
£m

Increase/
(decrease)
£m

Cashflow generated from operations

212.4

145.9

66.5

Free cashflow adjusting for restricted cash

68.2

63.4

4.8

Net (cash)/debt

(323.0)

(292.9)

(30.1)

Adjusted net debt*

239.3

244.7

5.4

Adjusted net debt/EBITDA*

1.36x

1.32x

 

* Adjusted net debt is net cash less restricted cash

David Brown, Group Chief Executive, commented:

“I am pleased with the Group’s financial performance in the year; with overall adjusted operating profit of £157.4m, slightly ahead of our expectations.

“It has been a year of financial progress in all three divisions. Our market positions have been strengthened, with organic growth supported by contract wins and extensions. As part of a targeted programme, we are pleased to have won new business in Singapore and Germany. We continue to explore similar opportunities in these and other selected markets.

“We’ve had a record year of profits from our bus division, achieving our £100m target as planned. Our regional bus business has sector leading margins and an industry leading customer satisfaction score of 89%. Go-Ahead remains the largest bus operator in London, retaining our 24 percent market share. We continued to invest in our business with £72m spent on over 300 new buses and £13m on new depots.

“The £6.5bn Thameslink Programme is a once in a generation opportunity to respond to the 40 percent passenger growth on Southern over the past five years and address the long term underinvestment in infrastructure. Customers will see gradual improvements over the next two years but the capacity of the network remains restricted until the end of 2018, when the ultimate benefits of this huge investment programme will be delivered.

“A large part of the role of the GTR franchise is to introduce three new train fleets and modernise working practices. During this period of change, Southern services have been disrupted by restricted network capacity, strike action and increased levels of absence. We apologise to the people whose lives have been affected during this time. We continue to work closely with the DfT, Network Rail and other suppliers and partners to operate the best service possible while delivering the long term improvements.

“Our rail division has delivered a robust financial performance, with strong results in Southeastern and London Midland offsetting weakness in GTR.

“Go-Ahead is committed to operating our business in a responsible manner and being a key part of the communities we serve. Over the past year Go-Ahead has made a significant contribution to the UK economy through the 27,500 people we employ, the £222.4m generated by our rail operations for the Government, and £24.8m paid in corporation tax. We are also pleased to have introduced the voluntary Living Wage across the entire Group.

“The Group remains in a good financial position, with strong cash generation and a robust balance sheet, allowing flexibility to pursue value-adding opportunities. This strong position underpins the Board’s decision to propose an increased final dividend for the year, supported by increased profits in our bus business. ”