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Investment story

Go-Ahead generates shareholder value through a combination of earnings growth, strong cash generation and balance sheet management. We have a steadfast commitment to operating with strong financial discipline and a conservative view towards risk. The sustainability of our business is underpinned by long term investment in public transport and our established positions in both the UK bus and rail markets. Innovation and durable industry relationships position the business to deliver continued value and drive growth opportunities. 

Strong financial profile

  • Our business has a consistent high level of cash generation with low levels of debt 
  • We have a progressive dividend growth policy to which the Board is committed. View our dividend policy, calculator and history
  • We are a high quality cost efficient operator with a tightly managed cost base 

Established position in UK bus and rail markets

  • Go-Ahead is a highly experienced operator and bidder in UK rail, with a strong track record of delivering high quality services on complex networks. We are the largest bus operator in London and have a strong, stable presence in the regional bus market. 

New overseas business

  • We believe there is significant opportunity globally for the services we provide, and we actively monitor a range of markets for opportunities. In 2016 Go-Ahead won business in two overseas markets: Singapore and Germany.
  • In September 2016 Go-Ahead started operating 25 bus routes in the Loyang district of Singapore. Singapore’s bus contracts system is largely modelled on London’s. The Loyang contract is awarded for five years with the option of a two-year extension based on good performance.
  • Go-Ahead is also entering the German rail market, having been awarded Netz 1 Lot 2 and Lot 3 of the Baden-Wurttemberg rail network. The contracts begin in June 2019 and run until 2032.

Customer focused in our local markets

  • We operate within a devolved structure, enabling local management to respond quickly and flexibly to customers’ needs 

Fundamental market strength

  • High motoring costs, increasing road congestion and a recognition amongst all major political parties that investment in public transport is vital to the economy, society and environment are drivers for long term sector growth

Effective leadership and management

  • Strong leadership is key to our success. The Group’s devolved structure enables our highly skilled local management teams to focus on the needs of the communities they serve

Leading the way in sustainability and innovation

  • We have a well-deserved reputation as a leader in environmental and social responsibility, in addition to technological innovation within our sector. This approach gives us a competitive advantage as well as saving costs and reducing our impact on the environment. 

Working in partnership

  • We place great importance in our relationships and adopt a collaborative approach with local communities, the government and strategic partners in developing and operating services which create long term value for all parties involved

Robust risk management

  • Our robust risk management and internal control systems enable us to continually identify assess and prioritise risks to the business

Risks and Uncertainties

The Board is responsible for determining the overall risk management framework for the group and for reviewing and establishing the appropriate level of risk to be taken in pursuit of strategic goals. Setting the risk appetite for the Group is an integral part of the development of corporate strategy and the Board debates the risks around each strategic area during the planning process. Where current risk levels are outside approved tolerance levels, management is required to develop appropriate mitigations.

Our annual report contains detailed information about our approach to risk management at all levels of the Group.