Group Strengths
UK focus and devolved structure
Our UK focus and devolved structure differentiates us from the other major public transport groups. Our operations are located in high density commuter markets, predominantly in the South East of England, where there is strong demand for public transport. We believe that public transport is best provided locally. We realise that whilst many of the markets in which we operate have common features, each have their own unique characteristics. Our devolved structure enables our local management teams to meet the specific needs of the passengers they serve. All of our bus and rail companies are locally branded and form an integral part of the communities they serve.
A leader in the London bus market
We have around 21% of the London bus market which makes us the capital's largest operator. We have a very strong depot network with almost 90% of capacity owned as freehold. The London population is set to increase by 1.3 million by 2031 and the Mayor of London has committed to reducing the capital's greenhouse gas emissions. Both are key drivers to continued future growth of the London bus market. View a map of our London bus depots.
Strong position in local bus market
Outside London, our operations are focused on high density commuter markets where demand for bus travel is high. Our devolved management structure and local branding distinguishes us from the other large transport groups in the UK. Our bus companies are locally branded, run by local managers and form an integral part of the communities in which they operate. We have recently introduced the key smartcard on our buses to improve the passenger experience and enable us to further understand our customers.
Busiest rail operator
Our operations make us the busiest rail operator in the UK, responsible for nearly 30% of all UK passenger rail journeys. Our current three franchises are primarily centred around London and are commuter intensive. In December 2009 we began operating the UK's first high speed domestic rail service between Kent and London, significantly reducing journey times. The high speed trains will play a key role in the 2012 Olympic’s by providing ‘Javelin’ services to the Olympic Park.
Committment to operating responsibly
We have made significant progress in improving our energy efficiency and are successfully working towards our target to reduce carbon emissions per passenger journey by 20% by 2015. Progress in meeting our target has been driven by innovative measures such as regenerative braking on our trains, fuel-efficient driver training for our bus drivers and a focus on reducing site energy use at our stations, depots and offices. We were the first UK public transport group to be officially certified with the Carbon Trust Standard in recognition of our work to reduce carbon emissions.
Strong balance sheet, cashflows and dividend policy
Our businesses are highly cash generative. We converted £164.3m of EBITDA* to £137.9m of operating cashflow in the 2011 financial year. We recognise that our dividend policy is a key part of the investment decision for many shareholders. Maintaining the amount of dividend per share at times in the cycle where earnings may reduce is a high priority for us and is supported by our strong balance sheet and cashflows.
* Earnings before interest, tax, depreciation and amortisation
Fundamental sector strengths
Go-Ahead firmly believes in the fundamental long-term strengths of UK public transport. The private car is getting less attractive financially and environmentally and the quality of public transport is increasing.As concern over the environment grows so does the awareness that a strong and growing public transport network is key to reducing carbon emissions and traffic congestion. All major political parties support and recognise the importance of public transport for the UK's present and future needs.And, in the long-term as the population grows and becomes wealthier, the demand for travel increases.