13 December 2005
As indicated at the time of the AGM statement, cost pressures continue to have an impact on the Group's bus division, particularly outside London where operating margins remain under pressure from high fuel costs and wage inflation. Management actions to address these cost pressures continue but will take some time to deliver results. In London, the bus business has continued to perform well, with good operating performance and cost control delivering solid returns.
Within the rail division, the operating performance at Southern has continued to be excellent with good passenger volume growth. We are also pleased to report that the recovery in passenger numbers at Thameslink following the terrorist attacks in the summer has continued through the period. We were delighted that Govia has been selected by the Department for Transport as the new franchisee for the new eight year Integrated Kent Franchise, one of the largest commuter rail franchises in the South East, commencing in April 2006. We are confident that real benefits will be delivered for both passengers and shareholders from this franchise. Following this success, the Group has decided to withdraw from the current pre-qualification process for the new South West franchise. However, the Group remains committed to pursuing further rail franchise opportunities in the future.
Trading in aviance, our ground handling business, is unchanged, with the focus remaining on the delivery of cost reductions. Plane Handling, our principal cargo business where recent volume growth is encouraging, and Meteor, our car parking business, continue to perform well.
As previously indicated, the issues highlighted above have had an impact on the Group's performance in the first half but the Board remains confident that the performance will improve during the second half of the year.
| For further information, please contact: |
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| The Go-Ahead Group plc |
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| Chris Moyes, Chief Executive |
0191 232 3123 |
| Ian Butcher, Group Finance Director |
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| Weber Shandwick Square Mile (WSSM) |
020 7067 0700 |
| Richard Hews/Rachel Taylor/Stephanie Badjonat |
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Note to Editors:
Go-Ahead is a key operator of commuter services in London and the South East. Through Govia, it is the franchise holder for Thameslink, Southern, as well as the future Integrated Kent franchise due to commence on 1 April 2006. Bus services include London Central and General, companies in North East England, West Midlands, Oxford, Brighton, Poole, Bournemouth, Southampton, Isle of Wight and routes in the Gatwick Airport and Crawley conurbation. The aviation and car parking businesses have nationwide coverage.