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News Category: Corporate

Go Ahead carries first passengers on major new Bavarian network

12 December 2022

Go Ahead carries first passengers on major new Bavarian network

  • Munich-based network expands Go-Ahead’s footprint in Germany
  • New destinations for Go-Ahead trains include Einstein’s birthplace and Legoland Germany
  • Go-Ahead Germany employs 1,000 people, runs a fleet of 144 trains and operates 20 million rail kilometres annually
  • International growth is at the core of Go-Ahead’s Next Billion Journeys strategy

Go-Ahead has begun operating trains on a major rail network in Bavaria linking Munich with regional towns and cities including Augsburg, Wurzburg and Aalen.

A 12-year contract began on Sunday on six lines previously operated by state-owned Deutsche Bahn. The first train, from Munich to Ulm and Donauwörth, left Munich at 00:06.

The mobilisation is Go-Ahead’s fifth German contract. It marks a significant expansion to Go-Ahead’s German rail business, which employs 1,000 people in Bavaria and Baden-Wurttemberg and comprises a fleet of 144 modern electric trains.

The new network serves 71 stations and will involve running 7.6 million train kilometres annually, bringing Go-Ahead’s total German network to 20 million train kilometres annually.

Among the destinations served under the new contract are Augsburg, world renowned for its medieval canals and water towers; Ulm, which was the birthplace of Albert Einstein; and Gunzburg, a popular family destination for Legoland Germany.

Go-Ahead’s fleet of 56 new Siemens trains have:

  • A top speed of 160 km/h
  • Fully accessible carriages, low floors and wheelchair friendly toilets
  • Flexible compartments with folding seats and spaces for pushchairs and luggage
  • Air conditioning, passenger information systems and charging sockets

Under the German system, Go-Ahead operates using tracks, stations and signals owned and maintained by Deutsche Bahn. Go-Ahead, in common with other third-party operators, pays access fees to Deutsche Bahn for use of the network.

Go-Ahead operates rail services in the UK, Germany and Norway. In its home market, the company is majority owner of Govia Thameslink Railway, which accounts for one in four UK passenger rail journeys.

Under a strategy published earlier this year, The Next Billion Journeys, Go-Ahead set out ambitious plans to grow its revenue by 30% to £4 billion through expansion and home and abroad, taking advantage of modal shift to public transport driven by climate change, digitalisation and urbanisation.

“”
This is an exciting day for Go-Ahead as it takes our rail network to new communities across southern Germany. It’s the culmination of years of work by our German team in getting trains, drivers and other colleagues in place. We’ll be working closely with Deutsche Bahn and the German authorities to deliver the best possible service to customers.

Christian Schreyer, Group Chief Executive, Go-Ahead Group

“”
We are delighted that we can offer modern and sustainable regional rail services with a brand new fleet. Today, I would like to thank my whole team – I’m proud of what they have achieved. We are all committed to, and strive for, a good and reliable quality of service

Fabian Amini, Managing Director of Go-Ahead Bayern

Go-Ahead expands in south-west England through acquisition of Dartline

14 November 2022

Go-Ahead expands in south-west England through acquisition of Dartline

  • Exeter-based bus and coach operator to join Go South West
  • Acquisition adds 118 employees and 84 buses
  • Complementary geographical fit alongside Plymouth Citybus, Go Devon Bus, and Go Cornwall Bus

The Go-Ahead Group has agreed to buy Dartline, a bus and coach operator based in Exeter, which will build on the group’s position as a leading local transport operator in Devon and Cornwall.

A well-established business with 30 years’ experience in the region, Dartline operates a fleet of 84 buses, coaches and special education needs taxis, and employs 118 people.

Dartline provides essential services for commuters, schools, day trippers local communities across East Devon. Its bus routes are a mixture of commercial routes and services operated under contract for Devon County Council.

Dartline’s coach division provides tours and private hire services. The company operates the team coach for Exeter Chiefs rugby union team.

Go-Ahead has grown rapidly in the West Country. From its origins as Plymouth Citybus, the group expanded into East Cornwall in 2014, and again in 2020 through an eight-year contract to deliver rural bus routes from Lands End to the Tamar for the county council, creating Go Cornwall Bus. The combined operation was given a new corporate identity as Go South West.

Following the acquisition of Dartline, Go South West, an Investors in People Platinum accredited company, will comprise of four customer facing brands operating 380 buses and coaches, employing a workforce of 900 people.

“”
We’ve been admirers of Dartline for a long time – it’s a family focused, well run bus company with a strong reputation and a competitive fleet. This acquisition will take us into wider Devon, and will mean that Go South West bus services stretch from the western tip of Cornwall to the Devon, Dorset and Somerset border.

Operating as a standalone business, we will maintain Dartline’s strong focus on delivering for local communities, and we will invest in growing and adding services in mid and east Devon.

Richard Stevens, Managing Director of Go South West

“”
I reached the grand age of 70 this year and decided its time to hand the reins to a progressive company like Go Ahead, the brand will continue as Dartline and all the staff will be maintained. Having started Dartline on 4th January 1987 with 8 Vehicles and building it to its size today I feel proud that it will continue under the new Management.

Dave Hounslow, Managing Director of Dartline

“”
We look forward to welcoming our new colleagues at Dartline into the group. This acquisition underlines Go-Ahead’s commitment to expand in the regional bus market in the UK, as set out in our group strategy, The Next Billion Journeys.

Christian Schreyer, Group Chief Executive, The Go-Ahead Group

David Cutts to become Managing Director of Go-Ahead London

22 September 2022

David Cutts to become Managing Director of Go-Ahead London

  • David Cutts, presently Operations Director, to become Managing Director in January
  • After 16 years in the role, John Trayner steps back from day-to-day operations
  • Go-Ahead London operates a quarter of London’s buses on behalf of Transport for London

The Go-Ahead Group announces that David Cutts is to become Managing Director of Go-Ahead London in the new year, replacing John Trayner who is retiring from day-to-day leadership of the capital’s biggest bus company.

David has been Operations Director of Go-Ahead London since 2006. He began his career as a London Buses management trainee prior to the bus network’s privatisation and he was Operations Manager of London Central’s Peckham depot when Go-Ahead bought the business in 1994. He has held senior positions for The Go-Ahead Group in Manchester and Singapore as well as in London.

He will take on the top job at Go-Ahead London on January 1st 2023, overseeing 7,750 colleagues, 2,300 buses and 17 depots, accounting for a quarter of London’s bus network.

John Trayner, who has been Go-Ahead London’s Managing Director for 16 years, will remain on The Go-Ahead Group’s Executive Committee with responsibility for strategic oversight of the group’s bus businesses in London, Ireland, Singapore and Sweden.

“”
David Cutts is an exceptional leader with huge experience of running successful bus networks. He takes on leadership of Go-Ahead London at an exciting time as the business pioneers zero-emission technology and works closely with Transport for London to encourage more Londoners onto public transport.

John Trayner has made a huge contribution to keeping Londoners moving over the last two decades. Under his tenure, Go-Ahead London has doubled in size and introduced electric buses and depots. He has been a champion of Londoners from diverse backgrounds through the company’s award-winning bus driver recruitment, training and apprenticeship programs.

Christian Schreyer, Group Chief Executive, The Go-Ahead Group

Vote for Newcastle! Go-Ahead backs bid to host Britain’s railway HQ

28 July 2022

Vote for Newcastle! Go-Ahead backs bid to host Britain’s railway HQ

The Go-Ahead Group plc is backing its home town by supporting Newcastle’s bid to host the headquarters of Great British Railways (GBR).

With a skilled workforce, a rich heritage in transport and great connectivity, Newcastle is the perfect location for the new body which will oversee Britain’s 20,000 miles of railway.

Go-Ahead, which employs more than 2,000 people locally and has its registered office in Newcastle city centre, is proud to support Newcastle City Council’s initiative to bring GB Railways to the north-east.

A competition to select the location for GB Railways’ head office was announced by the Secretary of State for Transport in 2021. Out of 42 expressions of interest, Newcastle was named in June as one of six shortlisted cities to be put to a public vote.

“”
As an international transport company originating from the north-east, Go-Ahead fully backs the Newcastle’s bid to host the headquarters of Great British Railways.

Newcastle is a vibrant city packed with innovation, excitement and ingenuity. It’s a great place to live, work and do business, and it’s full of transport talent and experience. We urge everybody to vote for Newcastle in this competition – and we look forward to welcoming Great British Railways to the city

Carolyn Ferguson, Go-Ahead’s Group Company Secretary who is based out of Go-Ahead’s office in Grey Street, Newcastle

Click here to watch our “back Newcastle” campaign video

GB Railways will be a single, accountable body responsible for Britain’s railways, as set out in the Williams-Shapps Plan for Rail published in May 2021. The Government wants this new organisation to be based outside London.

Newcastle City Council has proposed two sites for the headquarters – the Stephenson Quarter, where Robert Stephenson’s original locomotive works were established in 1823, or Forth Good Yards – location of the original passenger station when the railways came to Newcastle in 1839.

 

“”
I would like to thank Go Ahead Group for their support with the Newcastle bid. We’re a region that knows the importance of collaboration and this is yet another great example. Our partners and stakeholders are passionate about the future of our city, its growth, and the opportunities investments like this can bring.

This investment creates a visible and meaningful commitment to Levelling Up and would provide a further boost to our regional economy, delivering new jobs and opportunities for those who live and work here. It will also be a catalyst for further investment and opportunity, creating a new chapter and legacy in our railway history. The pride and ambition from partners like Go-Ahead Group, who are so committed to ensuring our city is full of opportunity, is invaluable.

Sam Cassidy, Inward Investment Manager, Newcastle Gateshead Initiative

The Newcastle city region is home to 2.6 million people and 70,000 businesses. Nine million people pass through Newcastle central station annually, and the city is well connected, with 80 direct destinations from Newcastle airport. The average journey to work for people in Newcastle is 7.8 miles – the lowest in England.

One of the largest transport companies based in the region, Go-Ahead was founded in 1987 through a buy-out of a Gateshead bus company. The Group now operates bus and rail in six countries – including Govia Thameslink Railway in the UK, which runs Thameslink, Southern, Great Northern and Gatwick Express services. In the Newcastle area, Go-Ahead runs buses under the Go North East brand.

You can back the bid and vote for Newcastle to become the home of Great British Railways, voting closes on 15 August: http://www.gbrtt.co.uk/hq-competition-public-vote

The final decision will be announced later this year by the Secretary of State for Transport.

Trading update for the year ended 2nd July 2022

11 July 2022

Trading update for the year ended 2nd July 2022

Go-Ahead today provides a trading update for the year ended 2 July 2022 (FY22).

“”
Passenger numbers on public transport have continued to recover from the pandemic and in certain parts of the UK, such as Manchester, our buses are as busy as they were before COVID-19. We are encouraged to see so many people using buses and trains and we expect a busy summer ahead, particularly in tourist areas.

Christian Schreyer, Group Chief Executive, The Go-Ahead Group

Our markets

Regional Bus

In our Regional Bus division, we have continued to see a steady recovery in passenger demand, with commercial volumes across the business now over 85 per cent of pre-pandemic levels. In some areas, we have seen particularly encouraging volumes in recent weeks, with pre-pandemic volumes being recorded on some days. These trends give us confidence in the continuation of passenger recovery in the coming months.

The Board now expects Regional Bus to deliver operating profit before exceptional items ahead of that of the prior two years.

London & International Bus

Our London & International Bus division will benefit from performance that is ahead of plan in London and Singapore, including better than anticipated Quality Incentive Contract (QICs) payments in London In Sweden, Flexbuss, which we acquired in April 2022, is trading positively and in line with our expectations.

The Board now expects the division to deliver operating profit before exceptional items at least in line with pre-pandemic underlying profitability levels (2019: £51.2m).

UK Rail

Following the successful commencement of GTR’s new National Rail Contract on 1 April 2022, the Board expects UK Rail to deliver operating profit before exceptional items within the range set out in the Group’s interim results of £25m – £30m.

International Rail

In Germany, we continue to progress our improvement plans in Baden-Württemberg, although financial penalties relating to operational performance have been slightly higher than anticipated in the period. Following discussions with our client in Baden-Württemberg, we are pleased to have reached a memorandum of understanding which will result in a modest improvement to the financial performance of the contract over its life. Further negotiations remain underway.

The first of two contracts in Bavaria started on 12 December 2021 and the second will commence in December 2022. Following the successful mobilisation of the first contract, performance has been in line with our expectations.

Mobilisation of the second contract in Bavaria remains underway ahead of its commencement in December 2022. As previously indicated, there are inherent uncertainties and risks associated with the mobilisation of this contract and in estimating the impact of key success factors including driver recruitment. As part of our year end procedures, we will be carefully reviewing the projections for the second contract in Bavaria and assessing the requirement for any potential further provision.

As announced on 28 June 2022, a new agreement was reached between the Norwegian Railway Directorate and Go-Ahead Norway A/S, regarding the structure of its rail contract. Under the original contract, which began in December 2019, the revenue risk associated with changes in passenger demand rested with Go-Ahead. During the COVID-19 pandemic, the Norwegian Government provided financial support to rail operators, preventing material losses.

The amended contract takes effect from 1 July 2022 and runs for the duration of the original contract, until December 2027 (plus a two-year extension option until December 2029). The contract provides a revenue support scheme until the end of the contract. The amended contract also includes an incentive scheme linked to revenue growth. As a result of these improved contractual arrangements, the Group expects to significantly reduce the £66.2m onerous contract provision relating to its rail operation in Norway in its full year results for the year ending 2 July 2022.

The Board expects International Rail to deliver an operating loss before exceptional items within the range set out in the Group’s interim results of £15m – £20m.

Balance sheet and liquidity

The Group has a strong balance sheet and maintains good liquidity. The Board continues to expect FY22 adjusted net debt/EBITDA to be at the lower end of the 1.5 to 2.5 times range, significantly below the 3.5 times bank covenant.

Overall performance

Overall, the Group expects to report a good performance for the year ended 2 July 2022.

Certain statements in this announcement constitute profit estimates for the purposes of Rule 28 of the City Code on Takeovers and Mergers. Further details on the basis of preparation of the profit estimates and certain confirmations from the directors of Go-Ahead in relation to the profit estimates can be found in the scheme document published by Go-Ahead dated 11 July 2022 which is available at https://www.go-ahead.com/investors/offer.

Go-Ahead agrees revised rail contract in Norway

28 June 2022

Go-Ahead agrees revised rail contract in Norway

The Go-Ahead Group is pleased to announce that, following discussions over a number of months, a new agreement has been reached between the Norwegian Railway Directorate and Go-Ahead Norway A/S, regarding the structure of its rail contract.

Under the original contract, which began in December 2019, the revenue risk associated with changes in passenger demand rested with Go-Ahead. During the COVID-19 pandemic, the Norwegian Government provided financial support to rail operators, preventing material losses.

The amended contract takes effect from 1 July 2022 and runs for the duration of the original contract, until December 2027 (plus a two-year extension option until December 2029).

The contract provides a revenue support scheme until the end of the contract. The amended contract also includes an incentive scheme linked to revenue growth.

As a result of these improved contractual arrangements, the Group expects to significantly reduce the £66.2m onerous contract provision relating to its rail operation in Norway in its full year results for the year ending 2 July 2022.

“”
We’re pleased to have reached an agreement with the Norwegian Government which puts our rail contract onto a satisfactory footing.

We’re proud of our colleagues at Go-Ahead Nordic who deliver an outstanding service and who have achieved the best customer satisfaction ratings on Norway’s railway network

Christian Schreyer, Group Chief Executive, The Go-Ahead Group

Go-Ahead announces management changes at Go North East

07 June 2022

Go-Ahead announces management changes at Go North East

  • Nigel Featham appointed Managing Director of Go North East in addition to Go North West
  • Ben Gilligan becomes Managing Director of East Yorkshire Buses

The Go-Ahead Group today announces that Nigel Featham is to be appointed Managing Director of Go North East, in addition to his existing role as MD of Go North West.

Nigel will take up the position at the end of August, replacing Martijn Gilbert who has decided to move on after four years at Go-Ahead for an opportunity elsewhere in the transport industry.

Long established in the area, Go North East employs over 2,000 people, facilitating 175,000 journeys every day on a fleet of nearly 600 buses and coaches across Northumberland, Tyne and Wear, County Durham and into the Tees Valley.

Presently head of Go-Ahead’s Manchester bus operation which employs 600 people, Nigel Featham has many years’ experience in the industry across the north of England. Between 2011 and 2019, he was Arriva’s regional managing director for Yorkshire and the north-east.

As part of a restructuring, Go-Ahead is to recruit an Area Director for the north-east, reporting to Nigel.

Additionally, East Yorkshire Buses, which presently reports into Go North East, will become accountable directly to Go-Ahead Group with its present Area Director, Ben Gilligan, promoted to Managing Director. East Yorkshire runs services in and around Hull, East Yorkshire, the Yorkshire coast and the North Yorkshire moors.

“”
Congratulations to both Nigel Featham and Ben Gilligan on taking on enhanced roles within Go-Ahead. Nigel is doing a fantastic job at Go North West, turning around the performance of the Queen’s Road depot and leading our participation in Manchester’s bus franchising process. He has many years’ experience in the north-east and is the ideal person to lead our business in the region. And Ben Gilligan has successfully integrated East Yorkshire Buses since we acquired the company in 2018.

Go North East is a special company within the Go-Ahead Group – it’s where our business originates, and I’d like to extend my thanks to Martijn Gilbert for his leadership over the last four years. Achievements under Martijn’s management include introducing the north-east’s first fleet of zero-emission buses, working with local authorities on successful funding bids and delivering an outstanding daily service to passengers.

Martin Dean, Go-Ahead’s Managing Director, UK Regional Bus

New Managing Director appointed for Go East Anglia

06 June 2022

New Managing Director appointed for Go East Anglia

The Go-Ahead Group has appointed Gavin Smith to become Managing Director of Go East Anglia, replacing Jeremy Cooper on his retirement from operational management.

With more than two decades’ experience in the industry, Gavin has held senior roles at bus companies in the United Kingdom and Singapore. He has a track record of delivering operational success, introducing new services and managing high performing teams.

Presently a Project Director in Go-Ahead’s Business Development team, Gavin was Operations Director of Go-Ahead Singapore between 2017 and 2021, with responsibility for a network comprising 400 vehicles and 800 bus drivers.

Prior to that, he held a series of roles at Go-Ahead London including overseeing the opening of the new River Road depot in Barking. He worked for Tower Transit and FirstGroup before joining Go-Ahead in 2014.

Based in Norwich, Go East Anglia comprises three local bus companies – Konectbus, Hedingham Omnibuses and Chambers Coaches – employing nearly 300 people in Norfolk, Suffolk and Essex and facilitating seven million passenger journeys annually.

Go East Anglia’s previous Managing Director, Jeremy Cooper, stood down in May after over 30 years in the industry. He is taking on a strategic role within Go-Ahead.

“”
Gavin brings a wealth of operational and strategic experience, and I’m delighted he’ll be taking on the role. Go-East Anglia is an important company within Go-Ahead and our strategy, The Next Billion Journeys, has set out an ambitious path for growth in the UK regional bus market.

Martin Dean, Go-Ahead’s Managing Director, UK Regional Bus

“”
I’m looking forward to working with the team at Go-East Anglia, as we encourage people back onto buses following the pandemic. I’m keen to build on Jeremy and the team’s success at Konectbus, Hedingham and Chambers, which provide vital public transport links to communities across the region.

Gavin Smith

The Go-Ahead Group and Lacroix & Savac agree strategic partnership

01 June 2022

The Go-Ahead Group and Lacroix & Savac agree strategic partnership

  • Partnership will explore opportunities to bid for bus contracts in Paris
  • The French market was identified as a priority under Go-Ahead’s new corporate strategy

The Go-Ahead Group and Groupe Lacroix & Savac have entered a strategic partnership to explore opportunities to bid together for public transport contracts in France.

Under the partnership, the two companies will target the market for bus services in and around Paris, where the city authorities have begun a process of putting routes out to tender as state-owned Epic RATP will lose its Paris bus monopoly in 2025.

Go-Ahead identified the opening of the French market as a priority for new business opportunities in The Next Billion Journeys, its recently published strategy. Lacroix & Savac is an established operator in the Ile de France region with more than 80 years’ experience.

Christian Schreyer, Group Chief Executive, The Go-Ahead Group, said: “Go-Ahead’s strength lies in running busy commuter transport services, and a key part of our strategy is to explore new opportunities in bus and light rail. With an outstanding track record and deep local knowledge, Lacroix & Savac is the perfect partner for us to work with in France.”

Stéphane Guenet, President of Lacroix & Savac, said: “This partnership will allow us to benefit from Go-Ahead’s expertise in mass transit and in entering urban areas that are newly open to competition. This will help us to adapt our offering for the Paris and suburban bus networks, which will be operated on behalf of Île-de-France Mobilités”.

Go-Ahead appoints Peter Robinson to oversee business development

31 May 2022

Go-Ahead appoints Peter Robinson to oversee business development

The Go-Ahead Group has appointed Peter Robinson to become Managing Director, Business Development, with responsibility for UK & international business development activities including mergers and acquisitions.

The role will be instrumental in the delivery of Go-Ahead’s recently announced business growth strategy, The Next Billion Journeys. It will involve working with Go-Ahead’s operating companies to develop the group’s position in existing markets, as well as leading on expansion into new markets.

Peter joined Go-Ahead as graduate trainee in 2004 and has worked across rail and bus, including overseeing the morebus brand in Dorset and Hampshire. He moved to Steer, the transport consultancy, worked for the Olympic Delivery Authority and completed an MBA at IMD in Switzerland before re-joining Go-Ahead in 2016. Since then he has been instrumental in the Group’s expansion into Manchester and the Republic of Ireland.

The appointment, with immediate effect, follows Martin Dean’s move to become Managing Director of Go-Ahead’s UK Regional Bus business.

“”
Peter is a good example of home grown talent at the Go-Ahead Group. He understands the business as an operational leader and he has a track record of success in winning and developing profitable business for us. I am confident he will help us to achieve the priorities set out in the ‘The Next Billion Journeys’ strategy, helping the business to grow and prosper across the UK and internationally.

Christian Schreyer, Go-Ahead’s Group Chief Executive

“”
It’s a privilege to follow in the footsteps of Martin Dean to lead the talented group of individuals in business development. I firmly believe the Go-Ahead business model, with its focus on local decision making, can bring further value to our home market as well as the wealth of growing markets around the world. I look forward to continue working with our teams around the world to support this growth.

Peter Robinson, Managing Director, Business Development