05 September 2008
We are pleased to report another year of record results for the Group, significantly ahead of last year and above our expectations in June.
Highlights
- Strong finish to the year
- Favourable cost settlements this year in rail of £7m
- Accelerated growth in bus and rail passenger numbers
- Addition of London Midland and Gatwick Express rail franchises
- Increase in year on year operating profit* by all twelve operating companies
Financial highlights |
2008 £'m |
2007 £'m |
Increase £'m |
Increase % |
Revenue |
2,199.1 |
1,826.9 |
372.2 |
20.4% |
Operating profit* |
144.9 |
118.1 |
26.8 |
22.7% |
Profit before tax* |
131.1 |
110.1 |
21.0 |
19.1% |
Profit before tax |
103.1 |
94.8 |
8.3 |
8.8% |
Cashflow generated from operations |
192.5 |
191.2 |
1.3 |
0.7% |
Basic earnings per share (p) |
128.8 |
124.2 |
4.6 |
3.7% |
Adjusted earnings per share (p)* |
174.8 |
140.7 |
34.1 |
24.2% |
Dividend paid and proposed (p)# |
81.0 |
70.0 |
11.0 |
15.7% |
Commenting on Go-Ahead's strategy and prospects, Chairman, Sir Patrick Brown said:
"We believe we are well placed for the year ahead, whilst mindful of the current economic uncertainty.
We have improved the composition of our business through the disposal of Go West Midlands, the addition of London Midlandand Gatwick Express rail franchises and the restructuring of aviation services. We have also reduced risk in areas such as fuel hedging, pensions and financing. Demand for our bus and rail services continues to rise as people change the way they travel, and our balance sheet and cashflows remain strong.
Our strategy continues to focus on providing high quality public transport services in the UK. We will target growth organically and from value-adding capital investment and acquisitions, whilst maintaining our financial discipline and progressive dividend policy.
Retaining the Southern franchise is a high priority for us and we were pleased to have been shortlisted by the DfT to bid for the new franchise.
We have started the new year well and trading has been in line with the Board's expectations."
Preliminary Results In Full (PDF)
For further information, please contact:
The Go-Ahead Group
Keith Ludeman, Group Chief Executive
Nick Swift, Group Finance Director |
020 7821 3920
020 7821 3922 |
An analysts' presentation will be held at 9.00am today at the City Presentation Centre, 4 Chiswell Street, Finsbury Square, London EC1Y 4UP
Copies of the presentation will be available on the Company's website.
Notes to editors
Go-Ahead is one of the UK's leading providers of passenger transport services operating in the bus, rail and aviation services sectors. Employing over 27,500 people across the country, around 920 million passenger journeys are undertaken on our services each year. In addition to the travelling public, customers include the Department for Transport (DfT), Transport for London (TfL), local authorities, British Airports Authority (BAA) and major airlines.
Bus
Go-Ahead is one of the UK's largest bus operators. With a fleet of over 3,400 buses, we carry, on average, around 1.6 million passengers every day. Our operations are focused on high density commuter markets. We have a strong
presence in London, with around 20% market share, where we provide regulated services for Transport for London (TfL). We operate deregulated services in the north east; Oxford; the south east and southern England.
Rail
The rail operation, Govia, is 65% owned by Go-Ahead and 35% by Keolis. It is the busiest rail operation in the UK,
responsible for nearly 30% of all UK passenger rail journeys through its three rail companies: Southern (which includes the Gatwick Express), Southeastern and London Midland. The Southeastern franchise will include the operation of new high speed trains on the domestic Channel Tunnel Rail Link into St Pancras International from 2009, significantly reducing current journey times.
Aviation Services
The Group's aviation services division is one of the UK's largest providers of cargo services (primarily Plane Handling), ground handling (primarily Aviance UK) and car parking (Meteor). The division operates from 16 airports and services major airline operators such as British Airways (BA), Virgin and bmi. Market leading services within Meteor include 'Meet & Greet' and 'Pink Elephant' services.
Legal disclaimer
Certain statements included in this press release contain forward-looking information concerning the Group's strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the sectors or markets in which the Group operations. By their nature, forward-looking statements involve uncertainty because they depend of future circumstances, and relate to events, not all of which are within the Company's control or can be produced by the Company. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ materially from those set out in the forward-looking statements. Nothing in this press release should be construed as a profit forecast, and no part of these results constitutes, or shall be taken to constitute, an invitation or inducement to invest in The Go-Ahead Group plc or any other entity, and must not be relied upon in anyway in connection with any investment decision. Except as required by law, the Company undertakes no obligation to update any forward-looking statements.