Half year results for the six months ended 27 December 2014
Overall results in line with management expectations
Overall results in line with management expectations. Full year expectations are unchanged
Bus operating profit up 8.4% to £45.1m, in line with strategic target
Rail operating profit down 2.9% to £10.2m, with margins reducing to 0.9%. Contribution to the Government increased to £108.2m
Challenging start to GTR franchise. Investment already underway to improve performance for passengers
Working with Network Rail to minimise disruption to rail passengers during major infrastructure projects, in particular the £6.5 billion Thameslink Programme
Proposed interim dividend increased by 4.3% to 26.6p (H1’14: 25.5p), in line with 2013/14 full year dividend increase
Shortlisted for Northern and TransPennine Express franchises. Exploring overseas bus and rail opportunities
Strong cashflow and reduction in adjusted net debt
Operating profit margin (%)
Net finance costs
Profit before tax and amortisation
Profit before tax
Adjusted earnings per share (p) (see note 7)
Proposed dividend per share (p)
Cashflow generated from operations
Net cash / (debt)
Adjusted net debt
Adjusted net debt/EBITDA (twelve month rolling basis)
Unless otherwise stated, references made to operating profit throughout this statement exclude amortisation and exceptional items
* Restated for the reclassification of defined benefit pension scheme net interest expense from operating costs to finance costs
David Brown, Group Chief Executive, commented:
“I am pleased with the Group’s financial performance in the first half of the year, with overall operating profit of £55.3m.
“Through our regional bus operations, Go-Ahead has kept people in towns and cities across the UK moving over the last three decades and we have heavily invested in our operations over this time. In the last five years alone, we have invested over £170 million in our regional bus services. Our passengers have given us a record 92% satisfaction score, reflecting the importance we place on listening to our customers, delivering value and responding innovatively to their evolving requirements. We firmly believe that public transport is best delivered through working in partnership, with strong alliances between operators and local authorities.
“We believe that increased rail infrastructure investment is essential to improve services and we welcomed the Government’s £38bn programme of infrastructure investment last year. While an investment programme of this scale will deliver enormous benefit in the long term, it will inevitably result in disruption while infrastructure improvements are made. We acknowledge the significant effect this has on passengers and are working closely with Network Rail to minimise the impact of this disruption.
“Overall, the Board’s expectations for the full year results remain unchanged, with second half profits expected to be similar to those in the first half of the year for both our bus and rail divisions. The Group remains in a good financial position, with strong cash generation and a robust balance sheet supporting our progressive dividend policy and allowing flexibility to pursue value-adding opportunities.”
Go-Ahead is a leading UK public transport operator, providing high quality services in the bus and rail sectors. Employing around 26,000 people acorss the country, over one billion passenger journeys are undertaken on our services each year. We are committed to operating our companies in a safe, socially and environmentally responsible way and are proud to have been accredited with triple Carbon Trust Standard for reductions in carbon, water and waste. In addition to the travelling public, or customers include the Department for Transport, Transport for London (TfL) and local authorities.